We are being warned that the World Trade Organisation is on the verge of collapse, which would result in the loss of a mechanism for settling trade disputes. What has not been noticed is that these trade disputes would not arise if governments were not
hell-bent on pursuing mercantilist policies to the detriment of their
own people. Mercantilism had been utterly discredited several times
over before 1800 but it refuses to die. It is as if present day doctors
still insisted in treating serious infections with leeches.
In
this situation the best policy for any government is to look after its
own people and not get in the way of inward trade so that its citizens
are able to purchase the goods they want, from whoever they want,
wherever they are, on the best terms they can obtain. Any interference
is a denial of the basic human right of people freely to exchange goods
and services on mutually agreed terms.
If the governments of other
countries do not reciprocate, the main losers are their own people. The
remedy is then in their hands: to get rid of the politicians who are
harming them.
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