Free trade, some love it, others hate it, in recent times many countries have started questioning if free trade, which is also known as the liberal world order, is good or bad business for the country’s finances.
People call this phenomenon anti-globalization, where countries withdraw from international trading- and political organizations, the most recent event being the president of the united states, Donald Trump’s new policy “America first” where he will prioritize America when making trade negotiations with other countries.
Trump states that the US has a negative trade deficit, due to bad trading agreements with many downsides for America. He argues that foreign investors from European countries and China has crippled the American economy.
Even though the U.S was a big part in the establishment of global trading organizations such as NATO, WTO, and UN, after the second world war. Recent studies also suggest that due to international trading agreements the world’s economy are seven times bigger than in the 1960s, and the American economy has grown 6 times larger.
However, the US Spends 14 billion dollars each year to be a part of these global trade organizations, which is a lot of money. Although, recent studies show that the US has earned over 100 billion by being a part of these institutions. So, what does Donald Trump’s policy “America First” try to achieve?