One of the more controversial issues on the US political agenda at the moment is the upcoming vote in the House of Representatives on the Central America Free Trade Area.
The Democrats, supported by the always backward-looking trade unions, are agitating fiercely against the treaty. And the vote will be critical in determining how the wider agenda of opening up world trade will develop.
The former President of Costa Rica Oscar Arias argued forcefully in the Washington Post for ratification of CAFTA. And he sees what has been done in Europe as an inspiration for what can be done in his part of the world:
”The countries of the Americas would be well served by studying the example of the European Union, where trade policies were enacted in conjunction with reasonable aid. Between 1986 and 1999 the income per capita in the poorest countries of Western Europe rose from 65 percent to 78 percent of the European Union average, largely thanks to economic integration with wealthier countries. Such an astonishing leap was made possible not only by the opening of markets but also by the transfer of resources from wealthier to poorer European nations, facilitating investments in technology and infrastructure.”
Let’s hope the majority of the members of Congress listens to his arguments as well as those of the administration.
We need a more open world – so that it’s benefits can be shared also by those now deprived of them.
Expanding the number of US states?
I must protest. Free trade is the biggest lie and corporate fad of our generation. No poor nation ever got wealthy by free trade. Rather by protectionism. It is reasonable that the US and most of Europe should be ”free trade”, but less fortunate countries in South and Central America .. no, I don’t think so. So why would they even consider it? Like in the case of Costa Rica. Well, it’s good for the wealthy, the haves, the political elite who couldn’t care less for what happens their own less fortunate. Just look at the blueprint struggle between corporate elites and the common man that is happening in Venezuela. Look at the botched coup to see what they are capable of and just how far they’ll go to ensure their own lot.
But I digress, in summary about free trade, in the words of Friedrich List:
”It is a very common clever device that when anyone has attained the summit of greatness, he kicks away the ladder by which he has climbed up, in order to deprive others of the means of climbing up after him.”
Just about every country that can be called developed did it using the same basic formula. Tariffs, barriers and ”theft” (as in intellectual property). The United States, since they now so eagerly advocate free trade (and immaterial law) using their puppet organizations the World Bank and the IMF, make up and especially poignant example. Hypocrisy is the name of the game. Just like when you ask the US to ratify Kyoto and they go like ”but what about China.” Forgetting of course that LDCs should have the same options on the road towards development. I don’t know what we should call that, neo-protectionism perhaps?