Ensuring protection without protectionism.

• Position: Homeland Security

The U.S., by and large, is a very open economy, with the free movement of goods across American borders a key pillar of national prosperity. For decades, criminals have used cargo containers, trucks, and train cars to bring narcotics, weapons, and people across U.S. borders illegally. In today's world of global conflict, however, this dynamic trading system also can be exploited by terrorists. The worst-case scenario would involve a weapon of mass destruction entering the country via trade channels. In "Protection Without Protectionism: Reconciling Homeland Security and Trade," Aaron Lukas of the Cato Institute's Center for Trade Policy Studies, Washington, D.C., examines ongoing efforts to make international trade more secure.

"The challenge for U.S. policymakers is to improve security while minimizing the loss of liberty and the benefits of economic openness," he stresses. "Trade is the lifeblood of the U.S. economy and cannot be curtailed without greatly restricting U.S. standards of living. Exchanging the possibility of a terror attack for the certainty of a poorer nation is not a wise course of action."

Lukas reports that the Bush Administration has made progress in improving trade security, but that the jury is still out on how effective its initiatives ultimately will be. He cautions that, while guarding against terrorism is important, it is vital that security does not become an excuse for domestic protectionism. Moreover, Lukas points out how...