Free Trade and Globalization Move Governments Into Action

The 2016 U.S. election has shown the hostility the public feels towards free trade agreements. This hostility is having an effect on the Presidential race, along with some other important senate races. The hostility has become so intense that it has caught the attention of the rest of the world. The concern is so serious that during the G20 meeting in China, some nations announced new measures to improve the image of free trade. “In an effort to shore up public support for trade, the leaders promised ‘inclusive growth’ to spread the benefits to people who have been left behind by wrenching change. That reflects a recognition that economic strains are fueling political tensions and a growing clamor to raise barriers against foreign competition.” The economic significance of free trade is so important that the G20 members felt compelled to address what they view as an alarming worldwide populist movement against globalization. As a result, some of the G20 nations agreed to modifications to certain trade policies. “The governments pledged to avoid devaluing their currencies to boost exports. They called for cooperation to reduce tax avoidance. They appealed for stepped up aid for surging global numbers of refugees and their host countries.” All of this happened because they view the current image of free trade in the U.S. and in Europe as a serious threat to the world economy and its stability.