Protectionism is expensive: it raises prices. The WTO’s global system lowers trade barriers through negotiation and operates under the principle of non-discrimination.
The result is reduced costs of production (because imports used in production are cheaper), reduced prices of finished goods and services, more choice and ultimately a lower cost of living.
Elsewhere, we look at the challenges that imports can present. Here the focus is on the impact on us, as consumers.
Overall incomes can rise. Trade opening since 1945 has boosted US annual incomes by $1 trillion, or $9,000 per household, according to the US government. Two major trade agreements of the 1990s — the WTO Uruguay Round and the North American Free Trade Agreement between the US, Canada, and Mexico — generate increased purchasing power of $1,300 to $2,000 per year for the average American family of four, it says.