Negative Case “Whether nations are permitted to ignore the immediate welfare of their citizens depends in large part on whether there is an enforceable right to work under the international framework. Economic rights developed under the human rights agenda, and an international covenant, guarantees the right to work as well as other economic rights. Even so, implementation of economic rights is difficult, and enforcement has not been pursued extensively. Despite the struggles with implementation and enforcement, the international community now publicly recognizes economic rights as human rights, and the economic right to work is directly applicable to the struggle of displaced workers.” because I agree with this quotation from: Borghard, 2006 [Aleah Borghard (staff writer; attorney), “Free Trade, Economic Rights, and Displaced Workers: It Works if you Work it,” Brooklyn Journal of International Law 32:161, 2006, p. 161.] I oppose the resolution offered by the affirmative in today’s debate. As this quotation suggests, the most important issue to be addressed in any discussion of international economics, rights, or trade, is citizen welfare of individual nations. The negative case will demonstrate that, advocacy of support for a single approach to all international trade would inevitably result in adverse consequences. The Value offered by the negative in today’s debate is nationalism. An explanation of this concept is found in the Encarta Dictionary. It is defined as, “proud loyalty and devotion to a nation The criterion for evaluating the negative value will be security.. The concept will be defined as: “the degree of enjoyment and satisfaction experienced in everyday life as opposed to financial or material well being.” From Encarta World Dictionary, (St. Martin’s Press, New York, 1999, p. 1468.) The relationship between the value and criterion is supported by David Lyons in Ethics and the Rule of Law (Cambridge University Press, 1984, p. 110.) “Utilitarianism takes many forms, but the central idea of its most common and traditional forms is that acts and institutions must be judged solely by their effects on human welfare, where the welfare of an individual is understood to be determined by facts about the individuals interests, wants and needs.” CONTENTION ONE: THE CONCEPT OF FREE TRADE IS HYPOTHETICAL A. Free trade is unattainable Irwin, 2010 [Douglas A. Irwin (professor of economics, author), “Protectionism vs. Free Trade,” CoBank Outlook: Economic Data and Commentary 7:7, July 2010, p. Internet access.] There has been substantial liberalization over the past few decades in terms of trade in manufactured goods. U.S. tariffs, European tariffs and tariffs from other countries are at pretty low levels. I would say that world commerce is pretty open and there is a lot of world trade, but there is still quite a bit of government intervention in trade. In manufactured goods, there are still a lot of implicit policies that favor domestic industries. For instance, even if China doesn’t have an import tariff on a particular item, they still can provide subsidized bank credit or have other means of promoting domestic firms. The U.S. still does this, too, through the Export-Import Bank of the United States, which provides subsidized export financing to companies like General Electric and Boeing. We also have some trade restrictions and remaining high tariffs for labor-intensive manufactured goods, like shoes and clothing. B. Free trade policy can become protectionist Bhagwati, 2008 [Jagdosh Bhagwati (Professor and senior fellow at the Council on Foreign Relations), “Protectionism,” Laurel Rawley Manvel High School The Concise Encyclopedia of Economics, Library of Economics and Liberty, 2008, p. Internet access.] Much economic analysis shows that, in the 1980s, fair trade mechanisms turned increasingly into protectionist instruments used unfairly against foreign competition. U.S. rice producers got a countervailing duty imposed on rice from Thailand, for example, by establishing that the Thai government was subsidizing rice exports by less than 1 percent—and ignoring the fact that Thailand also imposed a 5 percent tax on exports. We usually think that a foreign firm is dumping when it sells at a lower price in our market than in its own. But the U.S. government took an antidumping action against P oland’s exports of golf carts even though no golf carts were sold in Poland. C. Consensus among economists is lacking Lopez, 2010 [Matthew L. Lopez (attorney, staff writer), “The Effects of Free Trade on the Environment: Conserving the Environment While Maintaining Increased Levels of Economic Prosperity for Developing Countries,” Phoenix Law Review 3:701, Summer, 2010, p. 701.] Renowned Yale University economist Dr. Thomas Palley supports this theory: "[G]lobal economic growth has actually slowed relative to the prior quarter-century. This suggests that trade is at best only weakly associated with growth . . . ." Palley further argues that developing countries should consider abandoning free trade and primarily focus on preserving and growing their domestic markets in hopes of having a better opportunity to prosper economically. CONTENTION TWO: ON BALANCE FREE TRADE WILL ERODE THE QUALITY OF LIFE A. Free trade is not the answer for developing countries Lopez, 2010 [Matthew L. Lopez (attorney, staff writer), “The Effects of Free Trade on the Environment: Conserving the Environment While Maintaining Increased Levels of Economic Prosperity for Developing Countries,” Phoenix Law Review 3:701, Summer, 2010, p. 701.] It would be reasonable to expect that world leaders like the United States and Western European countries should have the power to enforce international environmental regulations. However, they face barriers to initiating their attempts because developing countries do not have the necessary economic resources to comply with developed countries' proposed environmental regulations. B. Free Trade allows for environmental abuse of developing countries Lopez, 2010 [Matthew L. Lopez (attorney, staff writer), “The Effects of Free Trade on the Environment: Conserving the Environment While Maintaining Increased Levels of Economic Prosperity for Developing Countries,” Phoenix Law Review 3:701, Summer, 2010, p. 701.] This method of foreign direct investment provides manufacturers from developing countries with the opportunity to increase their revenue by not having to comport with their home country's rigid and often-expensive environmental regulations. From this standpoint, opponents of globalization argue that free trade is a tool devised by the world's richest countries as an effort to continue their economic prosperity at the expense of less developed countries that have cheap labor and little or no environmental regulations. C. Worker rights are denied Routh, 2010 [Supriya Routh (professor of law), “Globalizing Labor Standards: The Developed-Developing Divide,” Jindal Law 2:153, September, 2010, p. 153.] In view of the destabilizing nature of global free trade on workers worldwide, worker protection is increasingly taking center stage in the free trade domain. Scholars are calling for the protection of workers from the vagaries of the global economic order. The welfare measures sculpted by the juxtaposition of the legislation on labor standards on a country-specific basis are taken to be the testimony of protection of the workers globally. Laurel Rawley Manvel High School D. Social justice is denied Routh, 2010 [Supriya Routh (professor of law), “Globalizing Labor Standards: The Developed-Developing Divide,” Jindal Law 2:153, September, 2010, p. 153.] The globalization thesis is being tested against the background of the realities of the globe. The liberalized market economy is finding it difficult to combine the varied interests of the nation states, situated at their typical developmental stages. The social justice promises of free trade are increasingly being perceived as illusionary by a vast majority of the liberalized world whom globalization ignored. ( ) Benefits outweigh concerns Borghard, 2006 [Aleah Borghard (staff writer; attorney), “Free Trade, Economic Rights, and Displaced Workers: It Works if you Work it,” Brooklyn Journal of International Law 32:161, 2006, p. 161.] In the pursuit of free trade, nations have experienced extreme gains and losses, and many economists consider the losses to be a necessary part of advancement. The detrimental effects faced by displaced workers, however, cannot be overlooked and regarded as an insignificant byproduct of the pursuit of liberalization. This byproduct is not only a human struggle; it is a struggle of people who are protected under international law. Displaced workers have a legal right under the ICESCR, and this right must be promoted to the maximum extent possible. Borghard, 2006 [Aleah Borghard (staff writer; attorney), “Free Trade, Economic Rights, and Displaced Workers: It Works if you Work it,” Brooklyn Journal of International Law 32:161, 2006, p. 161.] Displaced workers' rights, however, cannot come at the expense of free trade development. Free trade must be promoted as displaced workers' rights are simultaneously protected. Towards that end, any measures taken must help nations adapt to the future of trade, rather than impede the progress of liberalization. This Note's proposed solution of requiring participation in assistance programs and presumption in favor of developing nations also avoids the difficulties surrounding protectionist measures and quota restrictions which impede liberalization. Such protectionism injures all trading partners, impedes the growth of the global economy, and injures the greater potential for securing the right to work in the future. ( ) Free trade policy can become protectionist Bhagwati, 2008 [Jagdosh Bhagwati (Professor and senior fellow at the Council on Foreign Relations), “Protectionism,” The Concise Encyclopedia of Economics, Library of Economics and Liberty, 2008, p. Internet access.] Much economic analysis shows that, in the 1980s, fair trade mechanisms turned increasingly into protectionist instruments used unfairly against foreign competition. U.S. rice producers got a countervailing duty imposed on rice from Thailand, for example, by establishing that the Thai government was subsidizing rice exports by less than 1 percent—and ignoring the fact that Thailand also imposed a 5 percent tax on exports. We usually think that a foreign firm is dumping when it sells at a lower price in our market than in its own. But the U.S. government took an antidumping action against Poland’s exports of golf carts even though no golf carts were sold in Poland. Bhagwati, 2008 [Jagdosh Bhagwati (Professor and senior fellow at the Council on Foreign Relations), “Protectionism,” The Concise Encyclopedia of Economics, Library of Economics and Liberty, 2008, p. Internet access.] Economists have been thinking about how these fair trade mechanisms can be redesigned so as to insulate them Laurel Rawley Manvel High School from being “captured” and misused by special interests. Ideas include the creation of binational, as opposed to purely national, adjudication procedures that would ensure greater impartiality, as in the U.S.-Canada Free Trade Agreement, then incorporated into the enlarged North American Free Trade Agreement with Mexico. Also, greater use of WTO dispute-settlement procedures, and readier acceptance of their outcomes, is a possibility. Bhagwati, 2008 [Jagdosh Bhagwati (Professor and senior fellow at the Council on Foreign Relations), “Protectionism,” The Concise Encyclopedia of Economics, Library of Economics and Liberty, 2008, p. Internet access.] Increasingly, domestic producers have labeled as “unfair trade” a variety of foreign policies and institutions. Thus, opponents of the U.S.-Mexico Free Trade Agreement claimed that free trade between the two nations was impossible because of differences in Mexico’s environmental and labor standards. The litany of objections to gainful free trade from these alleged sources of unfair trade (or its evocative synonym, “the absence of level playing fields”) is endless. Here lies a new and powerful source of attack on the principles of free trade. ( ) Free trade is unattainable Irwin, 2010 [Douglas A. Irwin (professor of economics, author), “Protectionism vs. Free Trade,” CoBank Outlook: Economic Data and Commentary 7:7, July 2010, p. Internet access.] There has been substantial liberalization over the past few decades in terms of trade in manufactured goods. U.S. tariffs, European tariffs and tariffs from other countries are at pretty low levels. I would say that world commerce is pretty open and there is a lot of world trade, but there is still quite a bit of government intervention in trade. In manufactured goods, there are still a lot of implicit policies that favor domestic industries. For instance, even if China doesn’t have an import tariff on a particular item, they still can provide subsidized bank credit or have other means of promoting domestic firms. The U.S. still does this, too, through the Export-Import Bank of the United States, which provides subsidized export financing to companies like General Electric and Boeing. We also have some trade restrictions and remaining high tariffs for labor-intensive manufactured goods, like shoes and clothing. Irwin, 2010 [Douglas A. Irwin (professor of economics, author), “Protectionism vs. Free Trade,” CoBank Outlook: Economic Data and Commentary 7:7, July 2010, p. Internet access.] There are also still a lot of trade restrictions and domestic subsidies for agriculture. The U.S. protects a wide range of agricultural industries with price supports and other subsidies. For American producers, the Japanese rice market is very closed; South Korea’s rice market is closed and is also closed for U.S. beef; and Europe still has restrictions on U.S. beef imports. Irwin, 2010 [Douglas A. Irwin (professor of economics, author), “Protectionism vs. Free Trade,” CoBank Outlook: Economic Data and Commentary 7:7, July 2010, p. Internet access.] You almost have to take it on a country-by-country, industry-by-industry basis. The banking industry in China is still to a large extent government controlled. They control credit and access to credit for various firms, which means they can provide a lot of credit to industries they favor. That allows those industries to build capacity, and that excess capacity can sometimes depress world prices. As an example, some people claim there is excess capacity in the steel and chemical industries as a result of China’s accommodative banking policies for those industries. That creates problems in the West, because domestic industries that do not get subsidies are competing against capacities that are built up in China and other developing countries as a result of cheap government credit. In some cases the money doesn’t even have to be repaid; there are a lot of nonperforming loans at Chinese banks. You might also say that Airbus in Western Europe is an example of a protectionist policy. Airbus gets subsidized credit from E.U. countries, and European airlines have a financial incentive to buy from Airbus as opposed to Boeing. There is just a lot of implicit government support for that large firm. Irwin, 2010 [Douglas A. Irwin (professor of economics, author), “Protectionism vs. Free Trade,” CoBank Outlook: Economic Data and Commentary 7:7, July 2010, p. Internet access.] Unlike the Great Depression, this big recession has not been characterized by very intense protectionist Laurel Rawley Manvel High School pressures. In contrast, we saw a lot of protectionism during the early 1980s recession. A bunch of U.S. industries were being hit by foreign competition at the same time we were having that recession – the automobile industry faced competition from Japan; the steel industry had competition from Europe, Japan and Korea; and the textile industry was facing competition from developing countries. Irwin, 2010 [Douglas A. Irwin (professor of economics, author), “Protectionism vs. Free Trade,” CoBank Outlook: Economic Data and Commentary 7:7, July 2010, p. Internet access.] All those industries got a lot of trade protection in the 1980s because the dollar was strong and imports were still coming in despite the fact we had this recession. This recent recession is quite different, because the dollar did not strengthen dramatically and imports haven’t been surging. But those three industries have also adjusted a great deal to foreign competition. Now, the auto industry is much more multi-national, the steel industry has picked out its niche in the market where it can compete most effectively, and the textile industry, while it has shrunk, has moved toward higher-end types of products, where there is less competition. Those three industries aren’t demanding a lot of protection today, unlike the situation in the early 1980s. Laurel Rawley Manvel High School