24 Jun FAIRNESS IN TRADE BY RECIPROCITY AND REDUCTION IN TARIFF
If we do engage in foreign trade, should we limit foreign trade to nations that engage in “fair trade” by giving us access to their domestic markets and reciprocal import tariff reductions that mirror our tarriff reductions on our imports from them? Fairness in Foreign trade is essential for the benefit of all the countries engaged in importing or exporting to and from each other. But to derive maximum benefit out of the trade must observe reciprocity, reduction of tariff access to the domestic markets etc. Unless international trade is governed by bilateral trade and mutual agreements, economic sustainability can not be realized. However, all countries try to reach a contradictory goal with the intention of boosting their exports to enhance the income and profits or their businesses and earn more foreign exchange. At the same time they impose restrictions on imports by levying higher tariffs on the goods imported from other countries. This way they protect their domestic industries from facing any competition. It is an unrealistic approach as all the countries endeavor to achieve the same objective.
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