Free Trade

Jordan notes in relation to the proposed free trade deal with China that “The triumph of liberal economics in this country, at least in terms of trade policy, is truly assured when the Labour government is doing things like this.”

Indeed it is somewhat remarkable. Labour, and especially Clark, Goff and Sutton, have admirably sought bilateral and multilateral free trade deals. It is a remarkable departure from their protectionist past. Of course the current Foreign Minister is against such deals, for the protectionists out there.

But the other remarkable aspect is that the proposed deal isn’t with the US, the UK, or Canada but with The People’s Republic of China – which is still ‘officially’ a communist state.

Indeed now the commies have come on board, the remaining resistance to free trade can only be found with the Greens, the United States Congress and French farmers.

The multinational deals are proving a lot harder. People are getting excited over the new East Asia grouping which has an aspiration of becoming a rules-based free-trade organisation by 2015. I’m sceptical because I can recall APEC in the 1990s declaring by 2010 developed country members would remove their trade barriers, and other members by 2020.

Also I wish people wouldn’t call the proposed grouping an EU-style bloc. The differences between the EU and other groupings is immense. The EU has a parliament, an executive, diplomatic status and law making ability. The proposed East Asia group is nothing at all like that.