I examine how the nature of trade agreements negotiated by the United States has fundamentally changed over time, moving away from a focus on reducing tariffs and promoting free trade toward managing trade by exporting domestic regulations on issues like labor and the environment. It traces this evolution from the side-agreements on these topics in NAFTA, through their incorporation into later bilateral deals, to their prominence in failed initiatives like the Trans-Pacific Partnership. The renegotiated NAFTA deal (USMCA) doubled down on labor and environmental provisions while increasing protectionism. With countries like the EU also deprioritizing free trade, I suggest the U.S. and U.K. could pursue a very different model centering on mutual recognition rather than harmonization if political conditions allow. However, the prospects for restoring free trade as the primary objective appear increasingly dim.

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Trading Away Freedom: How Non-trade Elements Came to Dominate Trade Agreements

  • Iain Murray

摘要

I examine how the nature of trade agreements negotiated by the United States has fundamentally changed over time, moving away from a focus on reducing tariffs and promoting free trade toward managing trade by exporting domestic regulations on issues like labor and the environment. It traces this evolution from the side-agreements on these topics in NAFTA, through their incorporation into later bilateral deals, to their prominence in failed initiatives like the Trans-Pacific Partnership. The renegotiated NAFTA deal (USMCA) doubled down on labor and environmental provisions while increasing protectionism. With countries like the EU also deprioritizing free trade, I suggest the U.S. and U.K. could pursue a very different model centering on mutual recognition rather than harmonization if political conditions allow. However, the prospects for restoring free trade as the primary objective appear increasingly dim.