Not a Zero-Sum Game - Ludwig von Mises Institute

NOT A ZERO-SUM GAME
needed just fifty-four words to establish free trade among the
states.20 NAFTA, the "free" trade agreement between Canada,
Mexico, and the United States has two thousand pages, nine hun-
dred of which are tariff rates.21
The sheer size of these trade agreements with their myriad
stipulations and controls-such as rules of origin and the corre-
sponding inspection, verification requirements, and interference
in sovereign affairs such as labor laws-belie their name.
Trade agreements are filled with "exceptions." A favorite is
protection from foreign competition for those who wield political
influence through vested interests, typically the producers of
essential items. Ironically, many government efforts allow pro-
ducers of basic consumer items to charge high prices, redistribut-
ing income upwards: from the poorest members of society to the
privileged few. Rather than free trade these agreements create a
regime of managed trade and, not least, lots of expensive useless
wealth-consuming jobs for bureaucrats.
To supervise and control trade between countries makes as
much economic sense as supervising and controlling trade
between the states or provinces of the same country. If free trade
had not been stipulated in the U.S. Constitution, in all
probability we would see custom houses at every road, railroad
access, airport, and river and lake port in each state.22 Plus,
police to try to control contraband between states.
20. See p. 71.
2 1. See appendix 1, "Why Managed Trade is Not Free Trade."
22. See appendix 2, "Underdeveloping Indiana."
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