Free Trade and Globalization

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  • by Anup Shah
  • This Page Last Updated Monday, July 02, 2007

It is yet another Civilized Power, with its banner of the Prince of Peace in one hand and its loot-basket and its butcher-knife in the other.

Mark Twain, To the Person Sitting in Darkness, 1901, describing the United States playing the European-style imperialist game in the Philippines.

For globalism to work, America can’t be afraid to act like the almighty superpower that it is.…The hidden hand of the market will never work without a hidden fist—McDonald’s cannot flourish without McDonnell Douglas, the designer of the F-15. And the hidden fist that keeps the world safe for Silicon Valley’s technologies is called the United States Army, Air Force, Navy and Marine Corps.

Thomas Friedman, What the World Needs Now, New York Times, March 28, 1999. Quoted from Backing Up Globalization with Military Might

The world is becoming more globalized, there is no doubt about that. While that sounds promising, the current form of globalization, neoliberalism, free trade and open markets are coming under much criticism. The interests of powerful nations and corporations are shaping the terms of world trade. In democratic countries, they are shaping and affecting the ability of elected leaders to make decisions in the interests of their people. Elsewhere they are promoting narrow political discourse and even supporting dictatorships and the “stability” that it brings for their interests. This is to the detriment of most people in the world, while increasingly fewer people in proportion are prospering.

The western mainstream media, hardly provides much debate, gladly allowing this economic liberalism (a largely, but not only, politically conservative stance) to be confused with the term political liberalism (to do with progressive and liberal social political issues). Margaret Thatcher's slogan of “there is no alternative” rings sharply. Perhaps there is no alternative for such prosperity for a few, but what about a more equitable and sustainable development for all?

A Primer on Neoliberalism

Global trading that allows all nations to prosper and develop fairly and equitably is probably what most people would like to see. Neoliberalism is touted as the mechanism for this. Margaret Thatcher's TINA acronym suggested that There Is No Alternative. But what is neoliberalism, anyway? Last updated Monday, July 02, 2007.

Read article: A Primer on Neoliberalism

Criticisms of Current Forms of Free Trade

While internationalism and equitable global trading allowing fair development is probably what most people would like to see, the current model of corporate-led free trade and its version of globalization that has resulted, has come under criticism by many, many NGOs, developing nation governments and ordinary citizens. Last updated Friday, March 31, 2006.

Read article: Criticisms of Current Forms of Free Trade

The WTO and Free Trade

The World Trade Organization, (WTO), is the primary international body to help promote free trade, by drawing up the rules of international trade. However, it has been mired in controversy and seen to be hijacked by rich country interests, thus worsening the lot of the poor, and inviting protest and intense criticism. Last updated Friday, July 28, 2006.

Read article: The WTO and Free Trade

WTO Doha “Development” Trade Round Collapse, 2006

Supposed to be a “Development” round of trade talks, the almost five year-long Doha round collapsed at the end of July, 2006. The US found itself on the defensive as around the world blame was directed at the US, in particular by the EU. However, the EU has also been part of the reason for failure throughout the five years. This article looks at what happened at the end of 2006, and also introduces a collection of articles that were written at the time of each previous major WTO meetings from the initial Doha round in 2001 and since. Posted Friday, July 28, 2006.

Read article: WTO Doha “Development” Trade Round Collapse, 2006

Deregulation or Protectionism?

Protectionism is often referred to as being a barrier to free trade. The word seems to conjure up negative images of isolationism and subsidizing industries that could otherwise not compete fairly against others. (This can help indicate why some industries would strongly support protectionism for themselves.) Complete deregulation allows corporations to benefit but at the possible expense of people in that nation or region if that deregulation means relaxation of environmental rules, health and educational services including control of natural resources and energy. (This hints at the powerful lure that the "freeing" of trade and liberalization of access to resources from regulation has to some proponents.) Neither seems to answer the notion of fairness, though. Often those nations that promote free trade for all, want protectionism for themselves. Last updated Thursday, August 04, 2005.

Read article: Deregulation or Protectionism?

Some Regional Free Trade Agreements

There have been numerous regional free trade agreements. Some have been controversial, while others may be beneficial. Examples include the North American Free Trade Agreement (NAFTA), the Free Trade Area of the Americas (FTAA), US attempts at free trade agreements with African nations and so on. Last updated Sunday, November 03, 2002.

Read article: Some Regional Free Trade Agreements

The Mainstream Media and Free Trade

The mainstream media has been flooded by free trade proponents and heavily backed by those that will profit from it the most. This makes public debate more difficult. Last updated Sunday, July 14, 2002.

Read article: The Mainstream Media and Free Trade

Public Protests Around The World

As more and more people around the world are being negatively affected by the current corporate-led form of globalization, there are an increasing number of protests. While most have heard of the Seattle and Washington D.C. demonstrations against the WTO and the IMF/World Bank, respectively, there have been many around the world. Media portrayal by the corporate-owned mainstream of course, has been biased against the protesters. Last updated Tuesday, November 25, 2003.

Read article: Public Protests Around The World

WTO Protests in Seattle, 1999

At the end of November 1999, Seattle saw major governments meet at a WTO ministerial meeting to discuss various trading rules. Seattle also saw free speech cracked down on in the name of free trade. Enormous public protests ensued. There were many differences in the perspectives of developing and industrialized nations on the current reality of free trade and how it affected them. It resulted in a WTO failure to agree on many issues, without adopting any resolutions. Developing countries were sidelined and one delegate even physically barred from a meeting. Last updated Sunday, February 18, 2001.

Read article: WTO Protests in Seattle, 1999

General Agreement on Trade in Services

A similar agreement to the derailed Multilateral Agreement on Investment (MAI), the General Agreement on Trade in Services (GATS) at the WTO has a potentially wide ramification for the poor and developing countries. Last updated Tuesday, July 24, 2001.

Read article: General Agreement on Trade in Services

Multilateral Agreement on Investment

We had a potential nightmare in the form of the Multilateral Agreement on Investment (MAI). An almost secret agreement about investment rights and opening up nations for freer trade. However many, many people feared that this would be accompanied by grave social and environmental consequences, due to the wording of the MAI text. Last updated Wednesday, December 20, 2000.

Read article: Multilateral Agreement on Investment

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