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epalmer4y ago
Whilst many regulations cannot ensure total fairness in trade, they can promote fairer trade
Dumping
- Regulations on trade prevents dumping: when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market.
- This allows them to flood the market with product prices that are not equivalent to the fair market value.
- Countries can protect their domestic producers from dumping by using regulations such as tariffs and quotas against imported goods.
- Without this, trade at the fair market value is threatened and thus is fair trade in general.
Anti-discrimination Measures
- WTO law creates anti-discrimination measures, which make it illegal for countries to discriminate against each other in trade.
- This means they cannot accept the same product from one country and refuse it from another without a satisfactory basis, preventing the unfair politicization of trade.
Labour Rights
- Countries can set certain requirements when trading with another.
- They set labour clauses that list the minimum commitments for the protection of human rights at work in order to sign free trade agreements.
- A growing number of FTAs, particularly those signed by Canada, the United States and the European Union, contain social and labour provisions according to such regulations.
- This incentivises countries to protect labour rights in order to continue trading with countries that require that of their trading partners.
- This can ensure fair working conditions and promotes labour rights by protecting against exploitation such as wage slavery.
Safety
- Countries can also ban the trade of harmful/dangerous materials due to safety regulations in place.
- One example of this is the ban of asbestos trade in Canada, which has been declared a human carcinogen by the World Health Organization’s International Agency for Research on Cancer.
- These regulations ensure trade is ethical.
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Turi4y ago
Great points here, to which I'd add that left to their own devices, industries tend towards monopoly - that is to say that without regulation, all industries concentrate.
Fabulous book on the subject here - 'The Myth of Capitalism' by fervent free-marketeer Jonathan Tepper who argues regulation is the only thing that keeps the market free.
And nice primer on the topic in Vox here.
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