Monday, March 06, 2006

Hurray for more free trade!

El Salvador becomes first Central American nation to join free trade pact with US (via):

El Salvador on Wednesday became the first Central American nation to join a regional free trade agreement with the United States.
Truly good news for the country. Both countries actually. Of course there are downsides: Both countries have all kinds of restrictions and extra-demands, but the important thing is that an agreement was reached. Politicians can sometimes agree on something despite of politics.

Criticism from both El Salvadorians and American Democrats reflects the benefits of this free-trade agreement. From El Salvador:

But about 3,000 people marched elsewhere in the capital, San Salvador, to protest the agreement, which they say will hurt local farmers, street vendors and organized labor faced with competition from cheaper goods or with tighter restrictions on sales of counterfeit goods.
From USA:
Democratic critics contended the deal would expose US workers to unfair competition from low-wage nations and move more manufacturing jobs overseas.
This kind of criticism boils down to one concept: Division of labor. El Salvador will "steal" manufacturing jobs from Americans, and Americans will "compete unfairly" in prices on advanced consumer goods. American taxpayers will subsidize the agricultural goods for the people of El Salvador, and the people of El Salvador will gain jobs, increase domestic competition for labor and move forward towards a richer society.

In the end, both will be happy. Even while buying the soon-cheaper goods and services from their free-trade partner while complaining about each others unfair advantages.

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