Jagdish Bhagwatis Arguments of Multilateral Free Trade - Essay Example

Bhagwati also says that the fair trade that Obama agitates to affect free trade agreements. If Obama needs to clinch multilateralism and free trade in a forceful manner, he needs competent advisors that will see and criticize the demands associated with free trade and which amounts to protectionism (Bhagwati). Moreover, his advisors should also dismiss union fears that trading with poor countries harms the worker's wages. Therefore, Bhagwati affirms that free trade is not a country’s interest.

His arguments depict that trade liberalization tends to expose secluded industries and capitalism associated with them and finally making them vanish. However, this approach does not result in growth. Moreover, it will result in the emergence of new sectors that create modern exports. This will, in turn, propel a country towards comparative advantage. Bhagwati furthers presents his argument that free trade should not be reciprocal for it to be advantageous. He argues that the country tends to destruct its trade barriers after being offered mutual reductions.

Moreover, he argues that trade liberalization has a capacity of weakening what a country is capable of offering in swapping to attain adequate access to foreign markets.