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 31, 2026 12:39 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
Let the Hustlers Hustle
My latest for Acton Commentary. I’m also adding a couple of videos from Hotep and the Institute for Justice. Let the Hustlers Hustle By Anthony Bradley If necessity is the mother of invention, then there is nothing worse than quenching the entrepreneurial spirit of people seeking to improve their situation by imposing arbitrary third-party constraints. America’s unemployment problems linger because hustlers cannot hustle. For many, “hustling” connotes business activity that is shady, or even illegal. But in the munity it...
Dietrich Bonhoeffer’s 105th Birthday
Today is the 105th anniversary of the birth of the German pastor and theologian Dietrich Bonhoeffer. From the R&L archives: Bonhoeffer’s resistance to the Nazi regime included his support for and pastoral participation in the Confessing Church along with other prominent Protestant theologians like Karl Barth and Martin Niemöller, as well as his intricate association with the broader ecumenical movement. When the effectiveness of the Confessing Church’s opposition to Hitler was blunted and his efforts to bring the moral authority...
Hunter Baker Wins 2011 Novak Award
I’m pleased to report that Hunter Baker is the recipient of the 2011 Novak Award from the Acton Institute. Hunter is associate dean of arts and sciences and associate professor of political science at Union University in Jackson, Tenn., and author of The End of Secularism (Crossway Academic, 2009). From the release: With his writing and speaking in a variety of popular and academic contexts, Dr. Hunter Baker has made pelling prehensive case for the integration of the Christian faith...
The New Circuit Riders and the Bicycle Economy
God and Money passes along a news story about a church in Nebraska raising money “to buy motorcycles (probably not Harleys) for pastors in the African country of Tanzania. Pastors there serving multiple congregations cannot simulcast their sermons–they have to walk upwards of 60 miles to be with their flock.” It brings to mind the early American Methodist practice of sending out circuit riders. But it also illustrates the kinds of needs that can be met in unconventional ways. This...
Acton Lecture Series 2010: Sirico & Ballor
Wrapping up our recap of last year’s Acton Lecture Series, today we present two additional lectures for your enjoyment. The first was delivered in April of 2010 by Acton President Rev. Robert A. Sirico, and was entitled “Does Social Justice Require Socialism?” In this lecture, Sirico examined the increasing calls for government intervention in financial market regulation, health care, education reform, and economic stimulus in the name of “social justice”. And finally, we present Jordan Ballor’s lecture from July of...
Theology at Work & David W. Miller
Jordan Ballor already highlighted Rob Moll’s piece in today’s Wall Street Journal in his earlier post on business and Christian ministry. The piece quotes David W. Miller who was interviewed in the Winter 2008 issue of Religion & Liberty on the topic of theology at work. Earlier on the PowerBlog, I also posted a related PBS interview with Miller on corporate morality. Another great resource from the Religion & Liberty archives on theology and work is an interview with Laura...
Some Thoughts on Social Media and Publishing
After hearing about an established Christian publisher recently launching an official blog for their products, I did some thinking about the relationship between the traditional publication outlets and social media. I’m sure that traditional publishers have a relatively large budget for print advertising, but it seems that they are very slow to hire professionals to do serious social media work, blogging, and online advertising. This seems true at least in the academic markets and relative to their print marketing outreach....
Reagan Centennial Roundup
Rev. Robert Sirico, president and co-founder of the Acton Institute called Ronald Reagan a “sunny warrior for freedom” with “a clear sense of moral priority.” mentary was written a day after the former president’s death in 2004. If you walk into the Acton office you might notice a photo of Rev. Sirico and Acton executive director and co-founder Kris Mauren with Reagan at his former office in Century City, California. He holds a visible imprint at Acton. Sunday is Ronald...
Don’t Knock the Laffer Curve
Michael Kinsley has a column up at The Politico in which he claims to debunk a series of Reagan myths. The one that annoys me the most is the one that is obviously and clearly incorrect and at the same time gets the least explanation from Kinsley. Here it is: 6. The Reagan tax cuts paid for themselves because of the Laffer Curve. Please. With every other “myth” Kinsley takes on, he at least feels the need to explain himself....
Business as a Form of Christian Ministry
In a recent Acton Commentary, Stephen Grabill and Brett Elder reflect on the tension that often exists between conceptions of ministry in the church and in the world. They point especially to the Cape Town Commitment, which on the one hand identifies a “secular-sacred divide as a major obstacle to the mobilization of all God’s people in the mission of God.” But on the other hand, write Grabill and Elder, “The gulf between economics and theology in evangelical social engagement...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved