I have some questions, maybe unsurprisingly, on trade.
I understand the general logic of comparative advantage and am aware of the general consensus that free trade is good and tariffs are bad. That being said, I feel like a lot of the "new" trade deals, e.g. TTP TTIP and CETA, are less about tariffs and more about harmonization of regulations.
Do you feel that basic economic logic still applies, or does opposition to these deals might have a point, albeit one not based on economic considerations alone? For instance, a lot of the opposition towards TTIP in Germany seems to be the resistance towards the American style of consumer protection. As I understand it (and very very simplified), the burden of proof lies with the consumer in the US and with the firm in the EU. It seems entirely reasonable that harmonization of these two things might not be desirable to people and this can be reasonably put above welfare gains by way of liberalization. Do you think these arguments have merit, and if not, why not?
LuckstYle10 karma
Thanks for doing this AMA!
I have some questions, maybe unsurprisingly, on trade.
I understand the general logic of comparative advantage and am aware of the general consensus that free trade is good and tariffs are bad. That being said, I feel like a lot of the "new" trade deals, e.g. TTP TTIP and CETA, are less about tariffs and more about harmonization of regulations.
Do you feel that basic economic logic still applies, or does opposition to these deals might have a point, albeit one not based on economic considerations alone? For instance, a lot of the opposition towards TTIP in Germany seems to be the resistance towards the American style of consumer protection. As I understand it (and very very simplified), the burden of proof lies with the consumer in the US and with the firm in the EU. It seems entirely reasonable that harmonization of these two things might not be desirable to people and this can be reasonably put above welfare gains by way of liberalization. Do you think these arguments have merit, and if not, why not?
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