Free Trade vs Protectionism, That is the Question Mason juntos - 26 jan 2017

WHERE WE ARE RIGHT NOW according to http://www. heritage

CURRENT US TRADE AGREEMENTS

TRADE AGREEMENTS CON’T

ONE MORE

As close to free trade as you can get… Hong Kong! The implementation of prudent economic policy within a stable and transparent legal environment High level of market openness and fiscal discipline  Efficient and capable judiciary remains independent, and private property rights are well protected The overall entrepreneurial environment remains one of the world’s most transparent and efficient Hong Kong has a 0 percent average tariff rate. The country remains one of the most open economies in the world for international trade and investment. There is no general screening of foreign investment, and in most cases, foreign investors can maintain 100 percent ownership. The financial sector remains highly competitive and well capitalized, serving as a leading global hub.

The other side of the Spectrum: North Korea Bribery is pervasive, and corruption is endemic at every level of the state and economy Almost all property belongs to the state. Government control extends even to chattel property (domestically produced goods and all imports and exports) The government sets production levels for most products, and state- owned industries account for nearly all GDP. The state directs all significant economic activity North Korea receives extensive food and energy subsidies from China Multilateral sanctions on North Korea further restrict trade and investment

US Economy Snapshot All data from http://wdi.worldbank.org/table/

Five Reasons to Support Free Trade according to Ana Eiras’ “Why America Needs to Support Free Trade” REASON #1: Higher Standard of Living -”Allows them to consume higher quality goods at less expensive prices… Trade between nations is the same as trade between people.” REASON #2: Competition and Innovation REASON #3: Economic Growth -”Gaining free access to other markets opens up new business opportunities, encouraging investment and fostering job creation” REASON #4: Stronger Institutions and Infrastructure -” The rule of law is the first and most important institution fostered by free trade.” Law enforcement, banking and financial systems, and insurance institutions. “Promotes the improvement and expansion of infrastructure” to support trade. REASON #5: Peace -”Social desire to be at peace with neighboring and even faraway nations with which trade is conducted or might be conducted in the future”