Free Trade Today

by Jagdish N. Bhagwati

Free trade, indeed economic globalization generally, is under siege. The conventional arguments for protectionism have been discredited but not banished. And free trade faces strong new challenges from a variety of groups, including environmentalists and human rights activists as well as traditional lobbies who wrap their agendas in the language of justice and rights. These groups, claiming a general interest and denouncing free trade as a special interest of corporations and other capitalist forces, have organized large and vocal protests in Seattle, Prague, and elsewhere.

Based on his acclaimed Stockholm lectures and picking up where his widely influential Protectionism left off, Jagdish Bhagwati applies critical insights from revolutionary developments in commercial policy theory--many his own--to show how the pursuit of social and environmental agendas can be creatively reconciled with the pursuit of free trade. Indeed, he argues that free trade, by raising living standards, can serve these agendas far better than can a descent into trade sanctions and restrictions.

After settling the score in favor of free trade, Professor Bhagwati considers alternative ways in which it can be pursued. Chiefly, he argues in support of multilateralism and advances a withering critique of recent bilateral and regional free trade agreements (including NAFTA) as preferential arrangements that introduce growing chaos into the world trading system. He also makes a strong case for "going it alone" on the road to trade liberalization and endorses the reemergence of unilateral liberalization at points around the globe.

Forcefully, elegantly, and clearly written for the public by one of the foremost economic thinkers of our day, this volume is not merely accessible but essential reading for anyone interested in economic policy or in the world economy.

Genres: Economics

144 pages, Paperback

First published December 1, 2001

About the author

Jagdish Natwarlal Bhagwati (born July 26, 1934) is an Indian American economist and professor of economics and law at Columbia University. He is well known for his research in international trade and for his advocacy of free trade.

Reviews

[Alexey · Rating 4 out of 5]

when I read this (almost 15 years ago) this book was a great source of information and idea and significantly changed the way I perceived the topic of trade and protectionism. But I doubt it would have the same effect now.

[David Chappell · Rating 3 out of 5]

Bhagwati offers a brief but interesting argument about the benefits of free trade and the challenges it faces today, however doesn't offer much new. Personally, reading this book did introduce me to some new ideas, such as the economic costs of protectionism lobbying, the diversion of trade caused by preferential trade agreements or the lack of evidence for the 'race to the bottom'. Still, many of the ideas were familiar and, probably as a result of this being a lecture, felt underdeveloped. In particular some of the arguments, such as the claims that free trade was still the best course of action for internal and external market failures, felt a bit rehashed and lacked some of the depth that I'd have liked.

[Wax · Rating 3 out of 5]

Free trade is good