Where to intervene

By Alex Singleton | 4 September 2005

Sky News had me on recently to explain the EU-China textiles trade dispute, and towards the end of the interview I was asked if I thought countries should adopt complete free trade. I said yes and explained that when governments want to intervene to help specific groups - like textiles workers - they shouldn't intervene in free trade, for example through tariffs and quotas. They should instead intervene within their own economies, helping producers adapt to new circumstances. If governments block free trade, then they just delay dealing with the problem.