Unit 3: The Case for Protection

Part 5: Protection vs Free Trade—Who’s on What Side?

Debates about free trade have many more than two points of view. Nonetheless, it can be useful to understand a perhaps oversimplified view of the positions on trade. In general, the political right has frequently championed free trade, while the left has viewed it with some skepticism. Nonetheless, political realities often dictate the opposite: while George W. Bush erected steel tariffs and signed mammoth farm subsidies into law, Bill Clinton pushed for and won passage of NAFTA. Likewise, Pat Buchanan, conservative Republican presidential candidate, has been an outspoken opponent of free trade. The point is that any taxonomy of positions on protection and free is good so long as things political don’t change—which is not very long.

That said, it’s relatively easy to find arguments for free trade. Most international economics textbooks used in the US would give such arguments. Some more specific and detailed arguments against protection can be found at the Cato Institute website (see Unit 1) or their symposium by author Douglas Irwin on his book Free Trade Under Fire, or at the American Enterprise Institute. Also, for a more moderate voice in support of free-trade, you might see the Institute for International Economics website. Skeptics of free trade include EPI, Dollars and Sense, and the AFL-CIO. As mentioned in Unit 1, for the most part, the difference between these views is not their assumptions, but their approach to market imperfections. While Cato scholars take the market as sacrosanct, EPI and IIE are more likely to view markets as generally helpful, but in need of governance at the margins.

WEBSITES: These websites are listed below:

Cato Institute

"Free Trade Under Fire"

American Enterprise Institute

Institute for International Economics

EPI

Dollars and Sense

AFL-CIO