Free Trade Under Fire

An updated look at global trade and why it remains as controversial as ever Free trade is always under attack, more than ever in recent years. The imposition of numerous U.S. tariffs in 2018, and the retaliation those tariffs have drawn, has thrust trade issues to the top of the policy agenda. Critics contend that free trade brings economic pain, including plant closings and worker layoffs, and that trade agreements serve corporate interests, undercut domestic environmental regulations, and erode national sovereignty. Why are global trade and agreements such as the Trans-Pacific Partnership so controversial? Does free trade deserve its bad reputation? In Free Trade under Fire, Douglas Irwin sweeps aside the misconceptions that run rampant in the debate over trade and gives readers a clear understanding of the issues involved. In its fifth edition, the book has been updated to address the sweeping new policy developments under the Trump administration and the latest research on the impact of trade.

Growing international trade has helped lift living standards around the world, and yet free trade is always under attack. Critics complain that trade forces painful economic adjustments, such as plant closings and layoffs of workers, and charge that the World Trade Organization serves the interests of corporations, undercuts domestic environmental regulations, and erodes America's sovereignty. Why has global trade—and trade agreements such as NAFTA—become so controversial? Does free trade deserve its bad reputation? In Free Trade under Fire, Douglas Irwin sweeps aside the misconceptions that litter the debate over trade and gives the reader a clear understanding of the issues involved. This fourth edition has been thoroughly updated to include the most recent policy developments and the latest research findings on the impact of trade.

Growing international trade has helped lift living standards around the world, and yet free trade is always under attack. Critics complain that trade forces painful economic adjustments, such as plant closings and layoffs of workers, and charge that the World Trade Organization serves the interests of corporations, undercuts domestic environmental regulations, and erodes America's sovereignty. Why has global trade become so controversial? Does free trade deserve its bad reputation? In Free Trade under Fire, Douglas Irwin sweeps aside the misconceptions that litter the debate over trade and gives the reader a clear understanding of the issues involved. This third edition has been thoroughly updated to include the latest developments in world trade--including the practice of off-shoring services, the impact of trade on wages, and the implications of trade with China-based on the latest research.

Why has global trade become so controversial? In "Free Trade under Fire, " Irwin sweeps aside the misconceptions that litter the debate over trade and gives readers a clear understanding of the issues involved. He explains the economic benefits of trade, not just for corporations but for people and the environment.

Shows how the pursuit of social and environmental agendas can be creatively reconciled with the pursuit of free trade. Argues that free trade, by raising living standards, can serve these agendas far better than can a descent into trade sanctions and restrictions.

This book is part of a wider project on the economic logic behind the General Agreement on Tariffs and Trade (GATT). This volume asks: What does the historical record indicate about the aims and objectives of the framers of the GATT? Where did the provisions of the GATT come from and how did they evolve through various international meetings and drafts? To what extent does the historical record provide support for one or more of the economic rationales for the GATT? This book examines the motivations and contributions of the two main framers of the GATT, the United States and the United Kingdom, as well as the smaller role of other countries. The framers desired a commercial agreement on trade practices as well as negotiated reductions in trade barriers. Both were sought as a way to expand international trade to promote world prosperity, restrict the use of discriminatory policies to reduce conflict over trade, and thereby establish economic foundations for maintaining world peace.

The extreme protectionism that contributed to a collapse of world trade in the 1930s is examined in light of the recent economic crisis. The recent economic crisis—with the plunge in the stock market, numerous bank failures and widespread financial distress, declining output and rising unemployment—has been reminiscent of the Great Depression. The Depression of the 1930s was marked by the spread of protectionist trade policies, which contributed to a collapse in world trade. Although policymakers today claim that they will resist the protectionist temptation, recessions are breeding grounds for economic nationalism, and countries may yet consider imposing higher trade barriers. In Trade Policy Disaster, Douglas Irwin examines what we know about trade policy during the traumatic decade of the 1930s and considers what we can learn from the policy missteps of the time. Irwin argues that the extreme protectionism of the 1930s emerged as a consequence of policymakers' reluctance to abandon the gold standard and allow their currencies to depreciate. By ruling out exchange rate changes as an adjustment mechanism, policymakers turned instead to higher tariffs and other means of restricting imports. He offers a clear and concise exposition of such topics as the effect of higher trade barriers on the implosion of world trade; the impact of the Smoot-Hawley tariff of 1930; the reasons some countries adopted draconian trade restrictions (including exchange controls and import quotas) but others did not; the effect of preferential trade arrangements and bilateral clearing agreements on the multilateral system of world trade; and lessons for avoiding future trade wars.

Liberal democracy is under pressure worldwide. It is challenged by anti-liberal movements and parties as well as by authoritarian regimes. Liberalism as a cross-party movement and a broad way of thinking has fallen into the defensive and is often associated with market radicalism, social coldness, and ecological ignorance. The contributors show that liberalism as a school of thought is not dead. In their essays, they present ideas and approaches for new liberal concepts to cope with the great challenges of our time: from climate change, globalization, and the digital revolution to transnational migration and the increasing systemic competition between democracies and authoritarian regimes.