Free Trade is Simple
Hans Mahncke, an International Law and Trade scholar at Hong Kong’s Lion Rock Institute, takes to task recalcitrant NGOs in a recent TCS article. The essential sticking point is the inability to reform the WTO:
This makes the point beautifully: the more complex and regulatory trade agreements are, the more likely they are to not be free. As Mahncke asks, “Ultimately, if someone, anywhere, wants to buy someone else’s goods or services at a mutually agreeable price, why should government, or NGOs, interfere with such an arrangement?” Good question.
The WTO is plagued by two major faults. On the one hand, its rules have grown too complex, feature too many loopholes and allow for too much discretion on the part of those who actually understand them. On the other hand, if countries with greater negotiating clout cannot find a way to wiggle their way out of WTO commitments within the framework of multilateral rules, they simply circumvent these by entering into bilateral arrangements. Hence, assuming that NGOs are focused on a return to multilateralism, they ought to start investing their time and energy to lobby for fewer rules, rather than more.
This makes the point beautifully: the more complex and regulatory trade agreements are, the more likely they are to not be free. As Mahncke asks, “Ultimately, if someone, anywhere, wants to buy someone else’s goods or services at a mutually agreeable price, why should government, or NGOs, interfere with such an arrangement?” Good question.
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