11.4.05

Comércio livre vs comércio justo

The report demolishes the argument that poor countries need to protect infant industries, and shows that while such protection might sound good in principle, such policies never work in practice. It points out the failure of such policies in India, and how infant industry protection was merely a way for the rich to profit at the expense of ordinary Indians.

The Trade Justice Movement's support for managed trade, with price supports and quotas, is shown to cause poverty by reducing the world economy's ability to create wealth. The Movement's ideas for controlling world trade are impractical and would lead to the Sovietization of the world economy.

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The report is also critical of the anti-China stance of supporters of 'trade justice' - especially Christian Aid. It argues that the poor in China deserve just as much as everyone else the chance to compete in the textiles industry. The short-term grief now faced by countries like Cambodia is caused by past attempts at 'trade justice'. But had free trade been allowed in the first place, the transitional pain would not have occurred.