PRISM Might Be the Scandal – But Protectionism Poses Danger Too

Recent news has been dominated by revelations about the NSA and British intelligence agencies spying on citizens, without warrants, who have not been charged with crimes. It’s important for citizens to resist government intrusion into their privacy, as governments tend toward authoritarianism in the absence of pushback from their people.

Yet one aspect of the growing surveillance state that hasn’t been discussed as much is the Transatlantic Trade and Investment Partnership (TTIP) between the EU and the United States. Politicians have been trying to use negotiations around it as leverage for the unrelated political dispute about surveillance. It would be terrible to let elected officials use international political conflicts surrounding the US and UK surveillance state to erode free trade.

The economics on the matter simply could not be more clear: 95% of all US economists agree that tariffs and quotas decrease standards of living. Realizing this, Western nations have reduced tariffs and non-tariff barriers to trade significantly. And protectionism, which massively harms Africa and other developing parts of the world, has been mostly off the table between Western Nations. Until now.

With TTIP, the stakes are high. If the agreement manages to reduce the amount of tariffs between the US and the EU it will lead to beneficial outcomes for both economies. Lowering trade barriers are estimated to create up to two million jobs within Europe and the US. This would be especially crucial in the face of the present-day problems of youth unemployment and unfunded liabilities. Successful TTIP negotiations would create the largest free trade area in the world. The economic growth generated from this could be seen as a first step on the long path towards world-wide free trade.

Let’s be clear first that free trade agreements would not be necessary at all if governments were not interfering with trade in the first place. A free trade treaty (such as TTIP) should not be understood as a gift from government. It’s a Band-Aid, which presents a real opportunity for wealth creation for people living in those economies.

Free trade empowers people from different nations to exchange goods on a voluntary basis without government interference. Following from an understanding of the benefits of trade, all people should be able to trade freely under the rule of law. Each party of a trade expects to benefit from a transaction otherwise they would not do it. Interference from government hampers such mutually beneficial transactions.

Sadly, protectionism is still prevalent in the 21st century. It takes the form of direct tariffs or non-tariff barriers such as regulation and arbitrary standardization about, for example, the shape of bananas.

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Realizing free trade and reducing trade barriers is to the benefit of both consumers and producers. A prosperous world in which human beings have the freedom to pursue their own peaceful ends is a desirable goal. To achieve this policy makers ought to proceed with initiatives such as TTIP to the point that free trade will be the norm and not the exception.
Using political disputes over other atrocious acts of government as an excuse to deprive more than 800 million human beings of the possibilities to freely exchange goods and services is grossly negligent and outright harmful.

Government leaders have shown a capacity for learning, albeit slowly, from the mistakes of mercantilism. They’ve opened up their borders for goods, bringing much prosperity to the world. To stop this engine of wealth creation due to political disputes is holding millions of peaceful traders and consumers hostage. Citizens should not be punished for misconduct by governments and intelligence services.