Why the Trump trade deal with China is good for free trade

Peter Morici - a local economist and professor explains what the Trump - China phase 1 trade deal is good for free trade.

President Trump’s Phase One trade deal may save the World Trade Organization from breakdown and takes international commerce to a better place in a world divided between democratic market and autocratic state-directed economies.

Free trade is a simple but compelling idea — at least at universities, where students are taught David Ricardo’s example of England and Portugal exchanging wine and cloth.


American export industries are more R&D-intensive and at least 10 percent more productive than import-competing industries. The United States exporting $2.5 trillion and importing a like amount would raise GDP by some $275 billion — if trade were balanced and workers displaced by imports found other work.
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