The Myth Around Free Trade Agreement

It is a bit ironic, however, that the TPP seems to have discredited the free trade policy between its opponents, while at the same time prompting supporters to reaffirm their commitment to free trade. The content of the TPP has little to do with real free trade, as it has traditionally been understood, and covers issues such as investor-state dispute settlement and, decisively, IP for the purposes of this essay. India`s decision not to join the Regional Comprehensive Economic Partnership (RCEP) has provoked an avalanche of contributions, editorials and interviews. Most discussed the impact of the decision on four themes: exports, investment, integration into the global value chain (GVC) and domestic industry. Let us use another source of knowledge – the experience of countries with free trade agreements (FTA). The young Republican Party, led by Abraham Lincoln, who proclaimed himself “Henry Clay Tariff Whig,” strongly opposed free trade and introduced a 44 percent tariff during the Civil War, partly to pay for railroad subsidies and war efforts and partly to protect profitable industries. [40] William McKinley (later President of the United States) thus stated the attitude of the Republican Party (which won every presidential election from 1868 to 1912, with the exception of Grover Cleveland`s two non-consecutive terms) as follows: in Britain, the repeal of the Corn Laws in 1846 made free trade a central principle. The large-scale unrest was sponsored by the Anti-Corn Law League. As part of the Treaty of Nanjing, China opened five contract ports to world trade in 1843. The first free trade agreement, the Cobden-Chevalier Treaty, was concluded in 1860 between Britain and France, which gave rise to successive agreements between other countries in Europe.

[36] Most nations are now members of the World Trade Organization`s multilateral trade agreements. Free trade was best exemplified by the unilateral attitude of Britain, which from the mid-nineteenth century to the 1920s reduced rules and tariffs on imports and exports. [5] An alternative approach of creating free trade areas between groups of countries through agreements, such as those of the European Economic Area and Mercosur, creates a protectionist barrier between this free trade area and the rest of the world. Most governments continue to impose certain protectionist measures to support local employment, such as.B. the application of customs duties on imports or export subsidies. Governments can also restrict free trade to limit exports of natural resources….