Trade

Today, the purpose of trade agreements is different. Tariffs around the world are already low. The focus has shifted to “nontariff barriers,” and the most important of these — for the corporate interests pushing agreements — are regulations. Huge multinational corporations complain that inconsistent regulations make business costly. But most of the regulations, even if they are imperfect, are there for a reason: to protect workers, consumers, the economy and the environment. What’s more, those regulations were often put in place by governments responding to the democratic demands of their citizens. Trade agreements’ new boosters euphemistically claim that they are simply after regulatory harmonization, a clean-sounding phrase that implies an innocent plan to promote efficiency. One could, of course, get regulatory harmonization by strengthening regulations to the highest standards everywhere. But when corporations call for harmonization, what they really mean is a race to the bottom. Corporations want a world before the recent financial crisis that brought some regulation to banks. They want to go back to the era before the Clean Air Act and Clean Water Act so protection of the environment does not undermine their profits. President Obama and Republican leaders are trying again to push Fast Track trade authority. This Wednesday come here Stiglitz talk about where the global trade situation is now.