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Trade and California Strawberries

Free Trade, what is it?  It’s the ability to sell or purchase products and services between or within nations without the interference of government regulations, quotas and tariffs.  Free trade is usually discussed between countries such as U.S. and Canada, Mexico or Europeans.  Recently South American countries are entering the discussions to establish free trade partners.

Free trade is beneficial to both partners whether it be between countries or between states within the United States.

Objections to free trade are many and are usually associated with protectionism.  Liberals and environmentalist insist on using trade agreements to further their agendas of establishing preferred labor conditions and environmental conditions in other countries.  Even though their intentions are well intended, their approach to accomplish their goals is faulted.

California has the most stringent environmental regulations and the highest minimum wage rates in America.  Kansas has lesser restrictions and lower minimum wage rates.  What if California required that Kansas had to match California’s regulations and minimum wage rates before California strawberry farmers could sell strawberries to Kansas consumers?  In addition, what if Kansas steaks could not be sold to California consumers until Kansas’ regulations and wages were upgraded to match California’s.  Thank goodness we have free commerce laws between states to keep this from happening as established in the Constitution, Article I, Section 10, and paragraph 2.

Crazy idea?  But that is what the Liberals and Democrats are suggesting that the requirements on foreign trade be.  Mixing environmental and wage regulation with trade is crazy and ineffective.  The best way to improve the environmental conditions in other countries is to build their economies with trade.  As demand for their workers increase the worker conditions will improve.  As the economy builds the governments and business will have more money to improve the environments.  Economic growth in developing countries help the environment and working conditions more than restrictive trade conditions.

Free Trade also means competition and lower consumer prices.  Competition increases innovation and increases efficiency. Free Trade provides incentives for being creative and competitive. Those who oppose free trade are the ones who believe that America cannot compete and want to make our trading as difficult as possible. Free Trade provides a global market for our goods and services as well as providing access to the worlds goods and services. And where the markets thrive, businesses grow and flourish.

Location! Location! Location!  In a global market your location is important.  Do you desire to locate a business in a country where you have a competitive advantage with other business companies: No tariff and No taxes.  The US has the largest Corporate business tax in the world.   This is not very conducive to retaining current companies or attracting business to locate here.

Why would a business want to locate in the United States if they were under unfair trade rules to sell and buy from the rest of the world? They don't!