Home
/
RELIGION & LIBERTY ONLINE
/
How trade agreements distract us from the value of human exchange
How trade agreements distract us from the value of human exchange
Jan 10, 2026 7:46 PM

With the Trump administration’s announcement of a new trade deal with Mexico and Canada, some free traders are breathing a sigh of relief, as others investigate and discern the more detailed pros and cons and technical implications across workers, products, and industries.

“The tentative pact, which Congress must approve, spares auto makers from costly tariffs on cars imported from Canada and Mexico,” write Chester Dawson and Adrienne Roberts in the Wall Street Journal,” a major relief for an industry that has for more than two decades relied on duty-free trade to expand operations in North America.” But what about for others?

However the balance actually shakes out—whether trade is, on the whole, actually freer for more people as a result—it’s an opportune moment to remember that trade deals aren’t the same as free trade, no matter how positive a particular deal may pared to the alternatives.

It may seem a simple distinction, but in an essay for EconLog, economist Pierre Lemieux worries that amid our wonkish analysis of the various costs and benefits of such agreements, we might forget the underlying reality. As a result, we risk adopting the right policies while embracing the same faulty assumptions of the governments who orchestrate them:

A free trader is tempted to support such agreements for the good they do, not for their bad justifications. But this imbroglio risks entrenching the idea that free trade is a privilege of domestic producers instead of the liberty of both domestic consumers and producers (or their intermediaries) to individually make the best deals they can find. Another danger is to reinforce the idea that free trade requires free trade agreements, while in reality unilateral free trade would produce most of the benefits. In truth, as free trade agreements are now as much about regulation of trade as about free trade, unilateral free trade would potentially be more beneficial.

Such confusion pounded by an incoherence at the root. Why, we should ask, are these agreements needed in the first place? What is the goal of protectionism to begin with?

On this, Lemieux offers a unique position, arguing that protectionism doesn’t just contradict the values and priorities of an “individualist” perspective, but that it also falls apart from a collectivist point of view:

Protectionism is difficult to defend either from an individualist or from a collectivist viewpoint. From an individualist viewpoint, protectionism prevents individuals from satisfying their own preferences by making their own bargains—which is the essence of the definition of economic efficiency. Protectionism cannot be coherently defended from a collectivist viewpoint either, as it glorifies the use of ‘our’ collective resources for the benefit of foreigners, like using ‘our’ American farms and farmers to feed Canadians.

For such meddling to be justified, then, a more convoluted ideology needs to be at play:

To be defended in a coherent way, protectionism requires a sort of organicist and authoritarian nationalism; or an autarkic environmentalism; or a moral argument for coercive redistribution to a certain part of the public; or a very thin and naïve theory of the state—in which, for example, angelic politicians and omniscient bureaucrats calculate the “optimal tariff” to selflessly maximize the welfare of the populace. In most cases, the belief in protectionism may flow from a simple ignorance of the economic arguments for free trade.

This isn’t to say, of course, that we abandon support of any and all trade agreements, no matter how much or how little they the move our activity toward free exchange. Such a position would rely on a future scenario that is highly fanciful in our political and economic environment.

Rather, in fighting for increased freedoms in trade, and even in fighting for gradual improvements in existing agreements, we can stay mindful of why, exactly, we’re fighting for these freedoms in the first place. Though we may, indeed, end up supporting and adopting variations of politically managed trade in hopes of avoiding worse alternatives, we can remember that beneath it all lies mitment to something far more simple and straightforward: the moral and economic value of human exchange and collaboration.

Expanding opportunities for trade is simply expanding opportunities to connect the work of our hearts and hands to those of our neighbors through creative service and collaboration. Conversely, hindering those opportunities doesn’t just provoke and strain relations, it cuts off paths for creative collaboration with real people, disrupting a diverse, peaceful, and productive web of relationships among workers and creators from across the globe.

As our trade agreements improve, the wellbeing of this or that domestic industry or worker group is important, but it should be taken in full consideration of whether those circles of exchange are expanding and human collaboration is improving on the whole.

Image:MichaelGaida, Port, CC0

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Faded Memories Are Leading to a Rejection of Free Markets
After almost a hundred years of seeing the effects of socialism and other government interventions in the market, American attitudes began to change in the 1980s and 1990s. The benefits of deregulation and privatization began to seem obvious and more people began to embrace free enterprise. But as Daniel Yergin notes, there is now a shift away from markets due partially to “fading memories of the old order—or no memories at all.” Voters under 30 were either very small or...
Richard Epstein on conflict between anti-discrimination laws and religious freedom
Late last month, a federal judge declared Mississippi’s “Protecting Freedom of Conscience from Government Discrimination Act” (HB 1523) unconstitutional. In response, legal scholar and libertarian Richard Epstein discussed issues of religious freedom and anti-discrimination initiatives on the latest episode of the Hoover Institution’s podcast, The Libertarian. The Mississippi law was written to protect those with specific religious objections on issues of marriage, sexual acts outside of marriage, and gender. The law would give people with the specified views the state-protected...
Economic and religious implications of the RNC Platform
In the wake of last week’s Republican National Convention, and in the midst of the Democratic National Convention, it is more important than ever for voters to be thoroughly educated on each party’s platform going into the general election season. In two recent posts on the Republican Party platform, (part one, part two) Joe Carter provides prehensive summary of the Republican Party’s main stances (we’ll look at some of the Democratic Party’s platform issues in a later post). Some of...
Is free trade a form of warfare?
Throughout his presidential campaign Donald Trump has repeatedly claimed that Mexico is “killing us on trade” because of the North American Free Trade Agreement (NAFTA). This metaphor of trade as war or conflict is mon trope among leftists. But is it true? Are Americans harmed by trade deficits? As Johan Norberg explains this notion is “dead wrong.” And to see why we just have to look at the iPhone. ...
Re-branding capitalism for millennials
“Over the last decade, millennials have been characterized as filled with a sense of entitlement, lazy, and disillusioned,” says Allison Gilbert in this week’s Acton Commentary. “In the past year they have acquired another label: socialist” Despite the fact that the Democratic Party has begun to adopt more policies of the far left — like the $15 minimum wage — many polls show that less than half of Sanders supporters say they will be voting for Clinton this fall. Taking...
Does Microfinance Help the Poor?
This week at the Institute for Faith, Work and Economics, contributor James Clark asked, “Can microfinance really help the poor?” His conclusion: yes microfinance can work, but with certain caveats. In the last decade, microfinance has e a popular strategy in poverty alleviation, yet many economists and philanthropists often call its effectiveness into question. In his article Clark says that “Christians have embraced microfinance as a solution to poverty that helps the poor help themselves, but we must ensure that...
Explainer: What You Should Know About the Republican Party Platform (Part II)
Note: This second article in a two-part series on the Republican Party Platform. Part I can be found here. In the previous articlewe looked atsummary outline of the Republican platform as it relates to several non-economic issues covered by the Acton Institute. Today, we’ll look at the GOP’s economic agenda as laid out in the platform. Because the document is long (66 pages) and covers an extensive variety of economic-related areas (agriculture, energy) this list won’t be exhaustive. But it...
Explainer: the prohibition on political speech in churches
Why is political speech in churches back in the news? During his speech at the recent Republican National Convention, Donald Trump said, “An amendment, pushed by Lyndon Johnson many years ago, threatens religious institutions with a loss of their tax-exempt status if they openly advocate their political views.” The new GOP platform also says the “federal government, specifically the IRS, is constitutionally prohibited from policing or censoring speech based on religious convictions or beliefs” and urges the repeal of the...
George Washington’s principles for the nation revisited
In a recent article titled “George Washington’s Constitutional Morality,” Samuel Gregg explores the views of the first President on the founding principles and guiding influences of the United States. Gregg identifies three key elements of Washington’s political wishes for the new nation: Washington identified a distinct set of ideas that he thought should shape what he and others called an “Empire of Liberty”—classical republicanism, eighteenth-century English and Scottish Enlightenment thought, and “above all” Revelation. Washington, like many of the Founders,...
New book explores significant relationship between religious and economic freedom
On sale now at the Acton Book Store The role of economic liberty in contributing to human flourishing and mon good remains deeply underappreciated, even by those who are dedicated to religious liberty. – Samuel Gregg Gregg is acontributor of One and Indivisible: The Relationship Between Religious and Economic Freedom, on sale now in the Acton Book Shop. Compiled by Kevin Schmiesing, the book contains 13 essays from highly acclaimed authors, speakers, and religious leaders, including Michael Matheson Miller, Anielka...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved