Josh First's Blog

Fair trade, Yes

Historically, free trade American-style has come at a huge price to Americans.

Often defined by the same unsustainable standards that bring us endless illegal immigration today, free trade agreements between America and our trading partners have always treated America as a bottomless wallet. America could “afford” to give up more and absorb more costs, just because we were so rich and so great and kind-hearted (went the thinking, even among American decision makers).

America never got the “free” or even the good end of “free trade,” and it always got the burden of abiding by external tariffs on American goods and internal dumping that we could not legally identify, that enable our trading partners to undercut American-made prices every single time, no matter what the item.

So now there is a debate about how trading relationships between America and the world should be structured. If China, for example, has big tariffs on American goods, then it stands to reason that we Americans would benefit from placing similar tariffs on imported Chinese crap. Right?

I mean, fair is fair is fair. If one party can do it, the other can do it, too.

People treat one another fairly every day, and each side benefits in the way that they see fit for themselves. It is a good way to run a relationship.

Thus is fair trade born. The idea that trade ought to be fair, just straight up balanced without artificial contrivances giving one side an unfair advantage, based on symmetrical relationships and transparent production costs.

For example, China tolerates no equal opportunity hiring laws, no environmental laws, no workman’s compensation laws, no feminist demands for equal pay, etc. Chinese citizens who advocate for those things are either shot or jailed. Under those artificial conditions, China is able to produce almost any item far cheaper than Americans, who must comply with all of these laws and social pressures, and much, much more.

On top of that starting point, China will dump its own products at below-cost prices, just to swamp the competition and drive them out of business.

Fair trade tolerates none of this make-believe.

If China, again just as an example, wants to sell us a car here in America, fine. Sell it. Ship them over, and let’s see what the market will bear. But if we want to sell cars in China, by gosh, let us sell them there, for whatever the market will bear.

Free trade is one of those theoretical ideas that never really happens, try as one might. Like the magical unicorn under a rainbow, it paints a pretty picture, but it is mostly myth or fantasy.

Fair trade, yes.