The Detriments of Free Trade on Developing Countries


  • Gargee Piplani Dougherty Valley High School



Free Trade, Developing Countries, International Trade, Protectionism, International Trade Agreements


Worldwide, scholars continue to discuss free trade agreements and whether they achieve their intended purpose of bolstering international trade. Some assert that free trade aids smaller, struggling nations, by balancing exchange rates and providing cheaper labor. Others argue that free trade hurts these developing nations and their economies by putting them under a façade of economic growth. Upon examination, the detriments that free trade poses for developing countries include halting industrial development, stagnating poverty reduction, causing infant industries to compete with developed ones, and unfair disadvantages. The detriments of free trade on an international scale are evident, and outweigh its benefits, therefore a new worldwide economic principle must be implemented instead. This may include a return to the previous model of the General Agreement of Tariffs and Trade (GATT) or adopting protectionist policies. Regardless of the next trade model implemented, the current free trade system must be abolished to allow developing countries to achieve high levels economic growth without significant barriers.   


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