Editor’s Introduction

• DOI: http://doi.org/10.1111/ajes.12319
• Author: Alexandra W. Lough
• Published date: 01 January 2020
• Date: 01 January 2020

Editor’s Introduction

Free Trade: Theory, History, and Practice

By AlexandrA W. lough*

Amid the impeachment of Donald Trump that dominated much of

the news cycle in late 2019 and early 2020, the United States negoti-

ated and signed a massive new trade deal with Mexico and Canada.

Replacing the highly controversial North American Free Trade

Agreement (NAFTA), the United States-Mexico-Canada Agreement

(USMCA) provided updated rules of trade between the three nations,

placing greater emphasis on e-commerce. The fact that USMCA passed

through the U.S. Congress with widespread bipartisan support further

confirms what many economic observers have noted: free trade is

no longer a foundational pillar of U.S. foreign policy. Not only does

USMCA allow for auto quotas it also provides a poison pill that allows

the United States to leave USMCA if either Canada or Mexico enter

into a free trade agreement with a non-market economy (a reference

to China). Coupled with President Trump’s new tariffs on steel and the

removal of the United States from the Trans-Pacific Partnership (TPP),

the United States seems to have substituted economic nationalism for

free trade as a geopolitical strategy.

Historically, the United States utilized free trade agreements to pro-

mote its economic and political interests abroad, particularly in areas

of the world American leaders deemed susceptible to leftist uprisings.

NAFTA, for instance, took effect shortly before Latin America’s “pink

tide” hit Venezuela (Encarnación 2018). Even though many of these

agreements—particularly NAFTA—resulted in a loss of American jobs,

some domestic economic dislocation was considered tolerable so

long as free trade bolstered U.S. economic and national security inter-

ests in the long run. The United States is not alone in accepting this

logic. Countless other nations—and continents—have pursued free

trade agreements for similar goals.

American Journal of Economics and Sociology, Vol. 79, No. 1 (January, 2020).

DOI: 10.1111/ajes.12319

© 2020 American Journal of Economics and Sociology, Inc.

*Holds a PhD in American history from Brandeis University. Assistant editor of the

six-volume book series, The Annotated Works of Henry George (Fairleigh Dickinson

University Press). Email: Alexandra.lough@gmail.com