The Power of Free Trade

This commentary in today's LA Times (by Nathan Gardels) discusses the foremost power of free trade. The U.S.'s dependence on China has been much in the news recently, with China's discussion of a sell-off of U.S. Treasuries leading to dire prophesies of economic collapse.

Like any other transaction, though, real power accrues to buyers, not sellers.

In the name of sovereignty, China's leaders for a long time have gotten away with suppressing their own citizens while ignoring the get-gloriously-rich-quick corruption that has thrived in the absence of the rule of law. But, thanks to globalization, China's export reliance on the U.S. market has imported the political demands of the U.S. consumer into the equation. Americans won't hesitate to cut the import lifeline and shift away from Chinese products that might poison their children or kill their pets.

The Chinese economy is so dependent on selling to the U.S. market that its masters dare not risk anything that will offend the U.S. consumer. Labor standards, a free press, and the rule of law are all more likely to happen now that the Chinese market depends on countries that value them. An engaged society has an obligation to play by the world's rules. The U.S. consumer has, and is continuing to, use its funds for the betterment of humanity, in a more powerful way than any other means could.