One of the main reasons our Free Trade Agreements (FTAs) do not work is due to the fact that other countries immediately implement a value-added tax system after joining the World Trade Organization (WTO), while the U.S. still has not implemented a VAT. Free Trade Agreements either eliminate all or most of the tariffs between two countries. Once a country joins the World Trade Organization (WTO) that country then almost immediately implements a VAT system or raises their VAT to replace their tariffs. The VAT acts just like a tariff but is entirely in line with WTO standards. The result of this system is that American exports are essentially economically blocked by other nations.
Tag Archives: WTO
“Free trade” has essentially led to the most massive wealth transfer in the history of the world. The United States has not witnessed a trade surplus since 1975, and since then trillions of dollars have been lost through trade deficits caused by “free trade” on our end and protectionism on the other. The most significant flaw with all of our “free trade” agreements is that they are impossible to enforce, and because of this competition is impossible. “Free trade” depends on the premise that all countries will play by the same rules. However, in the real world, assuring that this occurs is incredibly expensive, time-consuming and inefficient to contest.
The World Trade Organization (WTO) has a provision called “most favored nation” (MFN) which requires all member countries to treat each other equally. Local, state, and federal regulations aimed at rewarding companies who hire locally, use local materials or adopt environment friendly practices are all illegal under the WTO. A “Buy California” bill, which would have given preference to local businesses, was vetoed by then-governor Gray Davis simply because it was illegal under the terms of the WTO.
Looking back at the year 2013, 631 people became ill due to veggies and cilantro coming from Mexico. These veggies landed in grocery stores across the U.S. and onto our dinner plates infected with cyclospora. In addition, 84 people became ill due to cucumbers containing salmonella coming from Mexico. How is it possible that we aren’t filtering these vegetables out?
The disastrous “free trade” inspired policies enforced through NAFTA and the WTO have led to the destruction of America’s independence. Our jobs have been sacrificed and our unilateral trade deals have created conditions that make it impossible for us to compete. These policies have led to the bankruptcy or sell-off of tens-of-thousands of American companies. Throughout the past 30-plus years America’s consumer-based relationship with the rest of the world has led to the complete annihilation of our manufacturing infrastructure.