Free Trade Day 2023: Date, History, Points Regarding Free Trade

Every year on May 8th, we celebrate Free Trade Day. No barriers to either imports or exports are part of a free trade strategy. In the context of global trade, you can also think of it as the concept of a free market. Liberal economics parties are the most consistent backers of this policy. Proponents of protectionism include economic nationalists and left-wing parties.
In economics, protectionism refers to measures used by governments to limit foreign imports. These measures can include tariffs, quotas, and other trade obstacles. Protectionist measures are still often used by governments as a means of bolstering domestic job opportunities.

The Background of Free Trade Day

In the 16th century, a basic form of the concept of free trade between multiple states emerged. The Spanish theologian Francisco de Vitoria wrote them. Free trade as we know it today was conceived by British economists Adam Smith and David Ricardo. Free trade proponents argue that this is what allowed countries like China and Egypt to flourish economically. This is a topic that has been discussed for ages.

Blocking colonial ports, the British Parliament passed the Prohibitory Act in 1775 during the American Revolution. That prompted the Second Continental Congress to declare financial independence. On April 6, 1776, this meant that American ports were officially open for international trade. They declared full independence three months later. According to economic historian Paul Bairoch, this period of open trade did not continue very long. He claims that ever since the late 18th century, the USA has been “the homeland and bastion of modern protectionism.”

When northern merchants attempted to shield themselves from southern rivals during the Civil War in the 19th century, hefty tariffs emerged. The South decided on free trade to facilitate the export of cotton. The Reciprocal Trade Agreements Act initiated trade liberalisation in 1934. After WWII, the United States became an advocate for free trade and lower tariffs. The World Trade Organisation and the General Agreement on Tariffs and Trade were both created with their assistance. Since then, the United States has negotiated a number of managed-trade pacts. Some examples are the 1985 Free Trade Agreement between Israel and the United States and the 2006 Free Trade Agreement between the Dominican Republic and Central America.

The World Trade Organisation now includes the vast majority of nations. It does not completely do away with trade restrictions or free trade zones in the region that help reduce barriers to commerce among members. Eleven Pacific-rim nations joined forces in 2018 under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

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5 CRITICAL POINTS REGARDING FREE TRADE

Dr. Tom Stevens, the founder of the Objectivist Party, established Free Trade Day.

The date was chosen because Friedrich Hayek, an Austrian economist and free-trade advocate, was born on that day.

Economists and economic historians like Federico Giovanni and Antonio Tena-Junguito have made this argument.

There appears to be widespread agreement that lowering trade barriers and encouraging freer commerce can boost economies.

When countries open their markets to one another, consumers in both sides gain from lower prices and greater quality products.

FREE TRADE DAY DATES