Freedom to Trade

Freedom to Trade

On a general basis, trade freedom is a measure of the absence of tariff and non-tariff barriers and all sorts of government imposed restrictions that may affect imports, exports and all kinds of exchange of goods and services. Zooming in on a micro scope of freedom to trade and in particular focusing on its socioeconomic aspect, a generalized position for being for or against can hardly be done without drawing the exact perimeter that defines the threshold below which restrictions are a must. In this paper I will highlight two points; one that contributes to the definition of the minimum required regulations to freedom to trade and another that discusses the moderation between excessive regulation and effectiveness.

Although individuals need to have the freedom to choose what to trade based on personal preferences and specialization in order to be able to make a living and survive, they are not only driven by their survival instinct. Individuals may be driven by desire, greed and power. This may create a natural pressure to take the freedom to trade to places that defy the basic principles of humanity and civic rights. Drugs and prostitution are a perfect example for that matter. Hadn’t there been any regulation to the legislation of drugs and prostitution in Amsterdam, things would have looked a lot different. Amsterdam is an example where the traded goods and services, weed and prostitution, pose big questions about their properness with regard to culture and society. Yet, it is also an example that illustrates the importance of regulation in the sense that in the extreme scenario where with no regulations, Amsterdam human trafficking and illegal drug trading would have looked a lot like Ghana, Uganda, and Bangladesh. In addition, one can also address not only socially sensitive topics such as organ selling, plastic surgery for minors, abortion… but also topics such as standards for construction,