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 13, 2026 2:13 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
Jumping the Shark: Hoffa’s Rant and Rerum Novarum
James Hoffa put on quite a performance this weekend—first on CNN’s “State of the Union,” and then in Detroit at a Labor rally with President Obama. Also this weekend, President Biden revealed that the White House seems to have given up and decided America is already a “house divided,” with “barbarians at the gate” in the form of the Tea Party. Coverage of these incidents is available from whichever news outlet you trust, but there is one thing that CNN...
Samuel Gregg: Obama’s Speech Misses It
Over at National Review Online, a panel of experts reacts to last night’s jobs speech by President Obama. Acton’s director of research, Samuel Gregg, was not encouraged by what he heard: a jumble of disproven Keynesian theories and strong-man rhetoric. mentary in full: Tonight’s speech was more of the same. President Obama’s hectoring lecture reflected the usual fare of Keynesianism mixed with mild nods to the private sector that e to expect. It also embodied an abiding faith in government...
Gregg’s Take on Labor Day Debate
Yesterday, five leading Republican candidates participated in the Palmetto Freedom Forum, a serious debate on constitutional principles. Mitt Romney, Michelle Bachmann, Newt Gingrich, Ron Paul, and Herman Cain answered questions from Tea Party congressmen Jim DeMint and Steve King, and Princeton professor Robert P. George. National Review Online has gathered reactions to the debate from notable conservatives; Acton director of research Samuel Gregg and senior fellow Marvin Olasky are among them. Gregg’s take-away is that American politics is shifting in...
Prerequisite for Life: The Man Class
Writing in the Detroit News about the latest rash of shootings in the city (nine dead and 20 injured), Luther Keith asks, “Haven’t we been around this track before?” Yes, actually. He lays out a list of measures to address the crime problem including some predictable (police, gun buybacks, recreational programs) and, refreshingly, something more promising, more powerful: “Emphasize personal responsibility. It es down to choices — right ones and wrong ones, good ones and bad ones and the willingness...
Stewardship and the Prodigal Son
In this week’s Acton Commentary, “Work and Prayer: Of Coins, Sheep, and Men,” I explore what the parable of the Prodigal Son (when read in conjunction with the parables of the Lost Coin and the Lost Sheep) has to teach us about stewardship: Reading these three stories together teaches us many things about the nature of God’s love for us, such that when we were lost, “While we were still sinners, Christ died for us” (Romans 5:8 NIV). But the...
Big Labor Dumps Rerum Novarum
Union leaders have been jockeying for position ahead of President Obama’s “jobs speech,” since the proposals he makes will be big opportunities for organized labor. AFL-CIO head Dick Trumka has asked the president to spend with abandon, and has reminded him rather ominously, “This is going to be a moment in history when our members are going to judge him.” Teamsters boss James Hoffa has called for the President to panies with cash in the bank to spend that money...
The High Cost of War
Justin Constantine has written an excellent piece on the high cost of war in the Atlantic titled “Wounded in Iraq: A Marine’s Story.” Constantine, who was shot in the head in Iraq, notes in his essay, Blood and treasure are the costs of war. However, many news articles today only address the treasure — the ballooning defense budget and high-priced weapons systems. The blood is simply an afterthought. Forgotten is the price paid by our wounded warriors. Forgotten are the...
A Thought for Labor Day Weekend
“Work gives meaning to life: It is the form in which we make ourselves useful to others, and thus to God.” –Lester DeKoster, Work: The Meaning of Your Life—A Christian Perspective, 2d ed. (Christian’s Library Press, 2010). ...
Guest Review: Schmalhofer on Roberts
The Price of Everything: A Parable of Possibility and Prosperity Russell Roberts Princeton University Press (2008); 224 pages; $9.69 Reviewed by Stephen Schmalhofer I hated freshman economics at Yale. It was the only C I ever received. Taught in a massive lecture hall, the professor posted endless equations and formulas. I found it sterile and artificial. My father was the CEO of a pany in rural Pennsylvania. I wandered the production facility as a child and saw chickens hatched in...
Evangelicals, Scholarship, and the Acton Institute
Awhile back someone questioned the scholarly credibility of the Acton Institute on the Emerging Scholars Network (ESN) Facebook page in connection with one of our student award programs, specifically contending the institute is “not scholarly.” To be sure, not everything the institute does is academic or scholarly. But we do some scholarship, which as an academic and a scholar I like to think is worthwhile. In fact, mitment to quality research is one of the things that is most remarkable...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved