The Deceptive Promise of Free Trade

A Game of No Rules: The Deceptive Promise of Free Trade

DW (2018)

Film Review

Produced in response to the protective tariffs Trump has enacted, this documentary shows the negative side of globalization and free trade. It maintains that most free trade treaties are one sided and significantly increase inequality. According to the filmmakers, the primary purpose of free trade is to give wealthy countries cheap access to the resources of developing countries.

Most of the film focuses on the¬† protective (aka “punitive”) tariffs Europe has been using for years to protect their domestic industries from cheap imports. In contrast, most US politicians have rejected protective tariffs in favor of free trade. The result has been the failure of many domestic American industries unable to compete with cheap Asian imports.

The film starts with the example of Germany, which charges punitive tariffs (50%) on imported Chinese bicycle frames. In all, the EU imposes punitive tariffs on 53 Chinese products, including steel, porcelain and ironing boards.

At the same time the EU imposes tough “free trade” treaties on African countries, prohibiting them from enacting protective tariffs to protect their farmers. This allows European countries to dump cheap agricultural surpluses on their economies, putting local farmers out of business when they can’t produce food cheaply enough to compete.

A Game of No Rules argues that local food production should be sheltered (by protective tariffs) in both developing and developed countries and that Third World countries should be allowed to enact protective tariffs while they establish local industries. Prohibiting Third World countries from enacting protective tariffs ultimately creates mass unemployment and a flood of economic refugees to the industrial North.

 

 

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