Introduction
I disagree with the idea of the effectiveness of free trade, which has been proposed as a solution for numerous economic issues. According to free trade, nations should be allowed to trade without limitations or impediments (Department of Foreign Affairs and Trade, n.d.). While, in principle, it is practiced all over the world, free trade has a lot of disadvantages, such as job losses, environmental degradation, and granting corporations greater power than governments or individuals.
Reasoning Behind the Argument
There are several reasons why I do not support free trade. One of them is that it causes job losses. Workers in the home nation lose their employment when businesses shift their operations abroad to benefit from cheaper labor costs. This force can destroy communities and people relying on such occupations.
The second reason is that it can lead to environmental degradation. Companies that operate in countries with lax environmental regulations can pollute and damage the environment without consequence (Department of Foreign Affairs and Trade, n.d.). In addition to harming local ecosystems, it also exacerbates climate change worldwide.
Free trade may also result in a race to the bottom regarding pay and working conditions. Finally, free trade agreements often include provisions that give corporations more power than governments or citizens. They allow corporations to sue governments if they pass laws or regulations that could harm their profits (Department of Foreign Affairs and Trade, n.d.). It undermines democracy and puts corporate interests above those of ordinary people.
Conclusion
In conclusion, in theory, free trade is a practical idea, but it has numerous detrimental effects on the environment, communities, and workers. Companies will choose countries with the lowest labor costs and weakest labor regulations, which might result in worker exploitation and abuse. People, therefore, require fair trade laws that prioritize people above money and guarantee that everyone benefits from global trade, not just a select few companies.
Reference
Department of Foreign Affairs and Trade. (n.d.). FTAs as drivers for liberalisation. Web.