The Pen is mightier than the sword, but the Pen must sometimes move the sword against corruption if the corrupt are not moved by the pen.. An idea without an implementer is useless. "The Rulers do not carry the sword in vain"Rom 13:4

Saturday, January 9, 2016

FREE TRADE AGREEMENTS and our loss of sovereignty.

The fundamental core element of FREE trade deals is this... Governments will not make decisions which can negatively impact the profitability of another countries investment in our own.

When you think about this, it is probably the most pernicious and white-anting act that a Government could do.   The agreement is meant to protect both Aussie interests in other countries as well as those of them in our country.

POLITICS. The problem, I believe is in the politics of those agreements. I suggest that because of our adversarial and competitive political landscape, that these agreements are not in the true national interest but have been infected by 'special' interests who support the political parties who make these agreements.  Every party has a constituency, and those supporters want their pound of economic flesh from those they support.

So.. using a simple example. A free trade deal with say Korea will mean two things.

i) Australia removed punitive Tarifs on Korean cars and electronic products.
ii) Korea opens it's market for Aussie beef.

There are many more elements to such deals, but let this try to illustrate the 'special' interest aspect. 
One would need to know the precise economic benefit to each country from the above 2 points, and them compare them to see who benefits most.  But we need to look deeper.. we need to examine what other things we might lose on.  This is where the politics comes in.  I assume a government will make a calculation which is skewed in favor of it's political support base. So..we hurl certain small manufacturing out the window.. in order for BEEF to do better in the Korean market.  This could be attributed to the fact that the Coalition government includes the cow cockies "National Party".

So... are these FTA's truly in the "National" interest or the interests of a politically biased special interest?
LOSS OF SOVEREIGNTY  The most damaging aspect to me is that a Korean company can sue the Australian government if it makes a decision that might negatively impact the interests of Korean enterprises active in Australia.

Perhaps a party like FORTITUDE which has the National Interest at heart, would look at these FTA's and make whatever adjustments are needed to better fit our broad national interest and prune back any aspects which can be traced back to unfair private interest expressed through the political party they support?

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