Line | Arboria is floundering in the global marketplace, |
incurring devastating losses in market position and | |
profits. The problem is not Arboria's products, but | |
Arboria's trade policy. Arboria faces the prospect | |
(5) | of continuing economic loss until Arborian business |
and political leaders recognize the fundamental | |
differences between Arborian and foreign economic | |
systems. Today the key trade issue is not free trade | |
versus protectionism but diminishing trade versus | |
(10) | expanding trade. |
Arboria is operating with an obsolete trade policy, | |
an artifact of the mid-1940s when Arboria and | |
Whorfland dominated the global economy, tariffs | |
were the principal obstacle to trade, and Arborian | |
(15) | supremacy was uncontested in virtually all industries. |
In the intervening decades, economic circumstances | |
have shifted radically. Arborian trade policy has not. | |
Today, Arboria's trade policy seems paralyzed | |
by the relentless conflict between proponents of | |
(20) | “free” and “fair” trade. The free traders argue that |
Arborian markets should be open, and the movement | |
of goods and services across national borders | |
unrestrained. The fair traders assert that access to | |
Arborian markets should be restricted until Arborian | |
(25) | businesses are granted equal access to foreign |
markets. They contend that free trade is impossible | |
while other nations erect barriers to Arborian exports. | |
Both are correct: fair trade requires equal access | |
and equal access leads to free trade. But both sides | |
(30) | base their positions on the same two outdated |
premises: | |
1. Global commerce is conducted under the terms of | |
the General Agreement on Tariffs and Trade (GATT) | |
and dominated by Arboria and similar economic | |
(35) | systems abroad. |
2. Multilateral negotiations are the most effective way | |
to resolve pressing trade issues. | |
Both assumptions are wrong. The 40-year-old GATT | |
now covers less than 7 percent of global commerce. | |
(40) | World trade is no longer dominated by the free- |
trade economies; nearly 75 percent is conducted | |
by economic systems operating with principles at | |
odds with those of Arboria. Forging a multilateral | |
trade policy consensus among so many diverse | |
(45) | economic systems has become virtually impossible. |
And while multilateral talks drag on, Arboria misses | |
opportunities for trade expansion. |
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