Free Trade

I think that free trade is a good thing for the entire world.

In third world and developing countries, labour is generally a lot cheaper than in established countries such as the United States and France. This means that it costs less to pay people to plant crops, pick crops, work in factories, and go deep into mineshafts. The goods from these countries are generally a lot cheaper than goods from well established western countries.

At the moment, it is hard for a farm in farm in Africa to sell food into France. Why? Because French put tarriffs on food from Africa (and other places), as well as paying subsidies to farmers in France. This means that it is artificially cheaper for French people to buy French food than to buy food that has been produced at a much lower cost elsewhere. This means that less money goes to Africa than would otherwise.

If France were to remove tarriffs, and stop subsidising French farmers, African food would become much cheaper, and money would begin to flow from France into Africa. In the short term, this means that farmers in France would be out of money (a disadvantage) and that food for consumers is cheaper (an advantage). It means that farmers in Africa make more money and are encouraged to expand their farming operations and therefore employ more people.

So in the short term France would begin to have a trade deficit with Africa (a good thing for Africa, a bad thing for France). However, it means that eventually people in Africa would become a little richer and would start to buy high quality consumer goods from France (Porche, fancy French clothes etc.). So although the farming industry in France would tone down, other industries would eventually pick up as a result.

As Africa became richer from selling all that food, they would have to start paying their workers a higher wage (with so many farms, workers would become harder to find). It would start to become more expensive to produce food, and eventually (50 years?) they would reach an equilibrium with France. So, for instance, Africa buys tomatos from France, and France buys apple from Africa.

That is a scenario that I made up just now. So Sam, pick my argument apart, and present a counter... I'm looking forward to it.