Why Are Trade Agreements Essential To Global Economy

High tariffs only protect domestic industry in the short term. In the long run, global companies will hire the cheapest workforce, wherever they are in the world, to make higher profits. Trade agreements remain essential because this temptation of every man for himself never disappears for governments – in the United States, but especially elsewhere.8 Tags: US elections, Trump, TTP, NAFTA, trade agreement [7] For a discussion of the trade disaster of the 1930s during the period of the Great Depression, which had no trade agreements, see Irwin (2011, 2012). Improving market access for the poorest developing countries would empower them to use trade for development and poverty reduction. Providing the poorest countries with duty-free and quota-free access to world markets would greatly benefit these countries at a low cost to the rest of the world. . . .