Any half intelligent economist would be supportive of agreements
that reduce traditional trade barriers (tariffs, quotas, etc.). However, most
modern economies have few trade barriers. Increasingly, multilateral trade
agreements are about the protection of multinationals and investors from the
rich nations.
Trade-Agreement Troubles BY JAMES SUROWIECKI offers a brief
and excellent summary of the reasons why many are dismayed by agreements such
as the TPP. Surowiecki notes:
“But these days
signing such agreements is risky for countries. I.S.D.S. lawsuits used to be
rare, but they’re becoming a growth industry. Nearly a hundred have been filed
in the past two years, as against some five hundred in the quarter century
before that. Investor protection, previously a sideshow in corporate law, is
now a regular part of law-school curricula. “We’ve also seen an expansion in
the types of claims that have been brought,” Lise Johnson, the head of
investment law and policy at the Columbia Center on Sustainable Investment,
told me. I.S.D.S. was originally meant to protect investors against seizure of
their assets by foreign governments. Now I.S.D.S. lawsuits go after things like
cancelled licenses, unapproved permits, and unwelcome regulations.”
Update:
Roger Lowenstein on David Ricardo, Comparative Advantage
and the TPP:
http://fortune.com/2015/06/22/top-fast-track-david-ricardo/
http://vivekjayakumar.blogspot.com/2015/05/free-trade-agreements-and-mncs.html
http://vivekjayakumar.blogspot.com/2015/06/multilateral-trade-agreements.html
http://vivekjayakumar.blogspot.com/2015/06/multilateral-trade-agreements.html