Topic > Reducing Barriers to Free Trade - 1672

IntroductionFree trade has long been regarded by economists as essential to promoting the effective use of natural resources, employment, poverty reduction and product diversity for consumers. But the concept of free trade had to overcome many obstacles. Including government practices in developed countries, under public and corporate pressure, to protect domestic companies from low-cost foreign products. But as history has repeatedly shown us, protectionist measures imposed by governments have almost always had negative effects on local and global economies. These protectionist measures also harm developing countries seeking to enter international trade markets. With the recent global recession we are currently experiencing, it is time for governments in all countries to work to reduce barriers to free trade. In recent years we have seen a decline in trade and growth in economies, along with huge unemployment numbers not seen since the Great Depression (Lamy, P. 2009). Governments must act to help promote trust in our economic and social systems (Lamy, P. 2009). Free trade must be part of this recovery process. For free trade to thrive, all world governments must resist protectionist measures such as high tariffs, non-tariff barriers or anti-dumping measures, and subsidies for domestic businesses (Lamy, P. 2009). Free trade can work, and there are many measures that governments can take to help promote free trade, which in turn will help developing countries raise the living standards of their citizens while protecting the local employment and national businesses and corporations. It works Even in these difficult economic times we are going through… half the paper… needed to ensure fair business practices. The World Trade Organization is a key component in helping to ensure fair trade and providing a tool to mitigate trade disputes. Overcoming fears of import competition is the greatest obstacle that all nations and governments must overcome. But I think the effective use of trade assistance programs is critical in trying to allay local workforce fears about free trade. ReferencesCarbaugh, Robert (2009). Global Economics, (13th ed.): South-Western, CengageLearning.Gidney, Michael, 2009. Government must act now on fair trade: Public Service.CO.UK, Retrieved from: http://www.publicservice. co .uk/feature_story.asp?id=11469Lamy, Pascal (2009). G20 nations must not turn inward in difficult times: Public Service.CO.UK, Retrieved from: http://www.publicservice.co.uk/feature_story.asp?id=11468