Resisting the Temptation

Abstract

The time has come for liberal trade to have two strong champions, the United States and the European Union. A protectionist European Union would perhaps benefit a few specific industries in the short term, such as the national automobile manufacturers, national airlines and farmers, but the long-term consequences would be to undermine European competitiveness. In the end all Europeans would be the losers. The principal aim of Union economic integration has been the curtailment of protectionism between the member states and to make the optimal use of all available resources. This logic led Union leaders to adopt the single-market plan and attempt the removal of all internal barriers to goods, services, capital and the movement of workers. In this respect the Union’s efforts have been remarkably successful. While the single market remains incomplete, in general the Union’s internal trade-barriers are being dismantled. Today, member states trade intimately with each other and cross-border corporate alliances and global production are blurring the distinction between what can be termed domestic and what is considered foreign. This free-trading logic should not stop at the Union’s borders, however.