Opportunity Lost

<p><span>The purpose of this article is to provide the appropriate policy framework to view the turmoil within which the US economy exists after the start of the second Trump administration utilizing tariffs with no comprehension of their long-term impacts.&nbsp; By highlighting the current economic events and comparing the conditions with the fundamental principles of free trade, the article seeks to provide a convincing case for the complete rejection of isolationist and mercantilist tools.&nbsp;</span></p> <p><span>The article demonstrates that free trade between global states leads to increased competition and more efficient production.&nbsp; When the principles of free trade are properly implemented, consumers in the marketplace enjoy a greater variety of better-quality goods at a lower price which is a win for the consumer.&nbsp; The concept of economic advantage leads to specialization in free trade economies, where a country only produces goods that they are efficient at producing resulting in higher levels of output in quantity and quality.&nbsp; When the principles of free trade are abandoned in favor of mercantilist and nationalist policies, other nations that relied on established free trade agreements seek other trading partners.&nbsp; The resulting impact to the transitioning economy away from free trade is chaotic at best and harmful for all of the economic participants.&nbsp; The first year of the second Trump administration can be best described as chaotic and detrimentally harmful to the United States’ interests and trading partners with no long-term plan for economic revitalization and prosperity.</span></p> <p><span>The article presents a concrete plan for Trade Law &amp; Development to rectify the shortcomings in the current administration’s trade policy by addressing the following topics: &nbsp;The fundamental differences between free trade and mercantilism. &nbsp;&nbsp;A comparison between present-day Trade Law &amp; Development policy in the United States and the Smoot-Hawley Tariff Act to show the negative consequences of utilizing tariffs to shape trade policy.&nbsp; The benefits that were offered by the Trans-Pacific Partnership to its sponsoring members and the opportunity lost by the United States’ withdrawal. &nbsp;The attacks levied against free trade principles by special interest groups benefit an economy in the short-term only.&nbsp; Pursuit of free-trade principles as part of a long-term Trade Law &amp; Development policy requires an effective education and marketing plan to obtain popular support.&nbsp; Illustrating the certitude of the foregoing statements by examining the failure of former US Senator, Joe Manchin, to embrace free trade and its negative effects on his constituents and his political career. &nbsp;In the final section of the article, a blueprint for a long-term Trade Law &amp; Development policy on behalf of the United States is presented to accomplish sustained economic growth for the country once the Trump administration ends.&nbsp;&nbsp;</span></p>