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Lost at sea - Exporting free trade policy to the Pacific : Comments
By Adam Wolfenden, published 28/9/2011The real problem for free trade theory and the Pacific is that it doesn't relate to the Pacific way of life.
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"A UN study in 2007 found for Vanuatu that despite reductions in its tariff lines, lower prices as a result of trade liberalisation didn't eventuate."
How would the study know whether prices being lower or higher after reductions in tariffs were because of or despite the tariffs? How would any such conclusion avoid the fallacy of 'post hoc ergo propter hoc'? For example, if the effect of the tariff were to reduce prices which nevertheless rose because of some other factor - such as reduced supply, or increased demand, or a change in the demand for money - how would the UN study know?
None of the protectionists ever explain
a) if free trade makes society poorer, why not abolish free trade altogether?
b) but if not, why don't the arguments for free trade that the author must concede, apply to the free trade that the author opposes? and
c) how the decision could by anything but arbitrary?