Thursday, August 29, 2002
Civil Interventionism

Whilst disregarding the main argument about where or how certain websites should be classified, identified, categorised, dissected and pigeonholed in Samizdata, there is a certain narrowing of the dabate when citing Burke over the issue of free trade vs. tariffs. In economic history, this issue was championed by the German liberal, Friedrich List, providing intellectual justifications for the existence of the Zollverein and the protection of industries. Here is a taste of his German liberal views on freedom, an admixture of nation and liberty:

Freedom of trade is
spoken of in the same terms as religious freedom and municipal
freedom. Hence the friends and advocates of freedom feel themselves
especially bound to defend freedom in all its forms. And thus the
term 'free trade' has become popular without drawing the necessary
distinction between freedom of internal trade within the State and
freedom of trade between separate nations, notwithstanding that
these two in their nature and operation are as distinct as the
heaven is from the earth. For while restrictions on the internal
trade of a state are compatible in only very few cases with the
liberty of individual citizens, in the case of international trade
the highest degree of individual liberty may consist with a high
degree of protective policy.


There is a translation of "The National System of Political Economy" here. List was wrong since freedom to trade is always beneficial and promotes long-term individual prosperity.

However, there is currently a tension in foreign policy between libertarianism and action, especially in contemporary circumstances. Trade is used as a weapon and as a tool in current foreign policy to further a state's interests, and although a long-term goal is a foreign policy that impacts minimally upon individual liberty, contemporary circumstances and pragmatism demand that this tool is utilised when necessary. The primary use of trade is sanctions, and such policies are justifiable at this point in time, though tariffs, subsidies, dumping actions etc. are not.

Does this mean that Britain should withdraw from the World Trade Organisation, on the grounds that it is illiberal and captured by certain interests, or work from within, as one of the few nations that appears to promote freer rather than more restricted trade?

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