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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](https://www.investopedia.com/terms/d/dumping.asp): 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](https://www.investopedia.com/terms/f/fairmarketvalue.asp).
- 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](https://www.ilo.org/global/standards/information-resources-and-publications/free-trade-agreements-and-labour-rights/lang--en/index.htm).
- 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](https://www.canada.ca/en/environment-climate-change/news/2018/10/the-government-of-canada-takes-measures-to-ban-asbestos-and-asbestoscontaining-products.html) 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'](https://www.wiley.com/en-us/The+Myth+of+Capitalism%3A+Monopolies+and+the+Death+of+Competition-p-9781119548195) by fervent free-marketeer [Jonathan Tepper](http://jonathan-tepper.com/) who argues regulation is the only thing that keeps the market free.
And nice primer on the topic in [Vox here](https://www.vox.com/2018/11/26/18112651/monopoly-open-markets-institute-report-concentration).
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