Free trade continues to be a hotly debated issue.
Free trade refers to the trade of goods and services between nations without tariffs, quotas, subsidies or, in some cases, interference by national law. Ever since America became a signatory to the GATT free trade agreement in 1995, debate has raged about the benefits and costs of free trade with much attention paid to its effect on the environment, human rights and economics.
The Environment
In an argument for free trade, some would say it is good for the environment because it encourages production appropriate for a country's natural resources and climate. For example, aluminum is produced in countries with an abundant supply of hydroelectric power, rather than countries that would have to rely on less environmentally friendly coal and gas.
In an argument against free trade, some environmentalists argue that free trade damages the environment because it creates incentives for countries to relax environmental protections as a way of luring industries. Further, they could argue, increased trade leads to more production and transportation, both notorious consumers of energy and creators of waste.
America
Supporters argue that free trade is good for America because unrestrained competition lowers consumer prices. They also point out that free trade opens formerly protected markets to American corporations that benefits all Americans.
Detractors say that the global economy has taken jobs from America because of relocation and rampant outsourcing to countries with lower wages. Free trade, they say, has helped to create wage stagnation in America and unemployment in Europe because of off shoring to China for its lower unskilled labor costs and India for its skilled labor.
International Relations
Supporters believe free trade promotes international cooperation in non-trade issues, as well such as the prevention of terrorism and human trafficking. Additionally, they argue that interdependence among nations reduces the likelihood of conflict and could even lead to the adoption of democracy, especially in developing countries.
Opponents of free trade believe that a country could become overly dependent on other countries for strategic materials or armaments that might leave that country defenseless against attack. Further, they believe that free trade leads to too much dependency on too few industries that could be devastating to smaller countries if demand for their industries fell off.
Third World
Proponents feel that people in developing countries benefit because free trade increases employment opportunities in those countries, raising the average worker's standard of living and keeping him in his home country instead of working illegally abroad.
Opponents claim that wealthy corporations from economically powerful countries offer employment in countries with the least regulation on wages, workplace safety and health, resulting in a kind of corporate colonialism.
