An Inquiry into Free Trade
I remember sitting in Dr. Vic Koop’s Abnormal Psychology
class in college methodically trudging through the DSM-III and learning about a
range of pathologies. One of the
anti-social traits that accompanied a variety of conditions was denial and
worst among the deniers were those who vociferously condemned the very
conditions they secretly manifest. We’ve
seen this scenario play out numerous times.
A televangelist condemns sexual deviance only to be found himself a
serial pedophile. A president campaigning for election on
transparency and condemning the offensive behavior of a previous administration
expands the most intrusive secretive surveillance and remote assassination
program in modern history. Within our
economic frameworks, I find that the lexicon we use to describe activities
typically evolve around this same paradoxical madness. We use the term “risk management” to mask the
predation on marginal exploitation just beyond the edge of sustainability. “What the market will bear,” is typically
associated with a point just beyond what the market can reasonably
withstand. We use the term “credit” when
we really mean anonymized debt and indenture.
When we speak of “employment” our focus is on those who are
unproductively disengaged.
There are few extremes of this madness that rival the
capitalist-heralded term “Free Trade”.
And to be sure, “Free” trade has never existed just like “Free” markets
or any other “Free” illusion. Over 200
years ago, the illusion of markets being “free” was socialized along with many
other humanist ideals. The degree to
which the government needed to interfere with markets for “development”
(another lexical illusion) was debated as much in the Adam Smith and Alexander
Hamilton era as it is today. Before
committing suicide in 1846, Friedrich List observed that “free trade would be a
universal subjugation of the less advanced nations to the predominant
manufacturing, commercial and naval power.” He argued that without equivalence of
civilization, political cultivation and power industrially advanced nations
would always advantage themselves at the expense of those who were less
advanced. And, as if to simply confirm
the prophetic critique of List, South Korea’s Ha-Joon Chang’s Kicking Away the Ladder: Development
Strategy in Historical Perspective recounts the evolution of trade policy
that continues to evolve in favor of the 19th and 20th
century industrial powers at the expense of the rest of the world’s
economies. With List, Chang demonstrates
the fact that policies lauded by the ‘developed’ as vital and important in one
time are removed from acceptability once they’ve achieved their desired effect in
the economies promulgating the rules.
From resources to labor to climate, using a utility until its useful
effect is maximized and then changing the rules to limit others’ capabilities
to employ the same utility is the dominant meme and is fundamentally contrived
and morally reprehensible.
Few places is this more pronounced than in the
still-secretive Trans-Pacific Partnership negotiations. Allegedly justified to “promote innovation,
economic growth and development, and support the creation and retention of
jobs,” the TPP is really an imposition of protectionist proprietary enclosure
regimes on producer countries for the benefit of incumbent consumer economic
power juggernauts. Ironically, this
agreement promoted as a way to foster “free trade” (like the Transatlantic
Trade and Investment Partnership with the EU aka TTIP) is being “negotiated” in
secret with many of the terms and conditions – and lobbyists for the same –
being held well outside public visibility or scrutiny.
Free trade isn’t. The
term affords social and political cover for manipulative protectionism in which
one or more trading entities concede domestic priorities for the promise of
some advantage on other fronts. It is a way, for example, to impose patent
rights on biological matter in direct contravention to the will of the citizens
who live in the “trading partner” country.
It’s not democratic. It’s not
transparent. And it’s not “Free”. These agreements, far from creating stability
in the global economy and promoting lasting peace, actually enrich political
patrons in the short term and fuel inequality-based conflict and uprisings in
the medium and long term. The U.S. wants
all TPP nations to open up their markets to tariff-free imports of U.S.
agriculture products – most recently and most prone to contention at the
moment: pork – but, in the same breath, wants to eliminate the prospect of
generic medicine in protectionist favor to U.S. drug producers. In other words, the U.S. wants restrictions
where they aid its interests and the elimination of the same when they harm economic
inequality. Free? Fair? Transparent? Democratic?
Not a prayer!
Like the sociopathic behaviors that make their way into the
annals of DSM-III lectures, trade negotiations which insist on palatable
terminology to mask offensive market manipulation need to be scrutinized in
public and held to account. They harm
short term economic growth and destroy integrity and accountability for future interactions. We can’t afford “free” anymore.