The only sovereignty that truly matters in matters of trade

Source: Cafe Hayek
by Don Boudreaux

“John Bolton worries that American participation in the WTO diminishes U.S. sovereignty (‘Trump, Trade, and American Sovereignty,’ March 8). For argument’s sake, let’s stipulate that Mr. Bolton is correct that WTO dispute-resolution procedures wrongly and dangerously diminish Uncle Sam’s sovereignty. What to do? By far the best and surest solution to this problem is for the U.S. to adopt, unconditionally, a policy of unilateral free trade. Because such a policy would render U.S. membership in the WTO (and, indeed, in all trade agreements) pointless, our government could withdraw from that organization. American consumers would be free to buy from whichever suppliers offer them the best deals, while American producers would be free to sell to whichever buyers make them the best offers.” (03/08/17)