Rules-based, automatically adjusting trade policy for freer trade

Source: Cobden Centre
by Vishal Wilde

“A major contemporary worry is that threats of tariffs, preservation of subsidies and licensing and standards restrictions for imports and exports will derail any progress that has been made towards true free trade. Indeed, one of the issues is that as politicians seek to satisfy particular Special Interest Groups over others, the risks of a trade war escalating as tariffs on particular products correspond to the other nation reciprocating and so on and so forth are very real. One way to deal with this may be, rather counter-intuitively, to set up a system of automatically-adjusting subsidies and tariffs that is ‘rules-based’ rather than what is essentially discretion.” (03/23/17)