Dr. Ram Manohar Lohiya National Law University, Lucknow

B.A., LL.B. (Hons.)

International Trade Law

'The misuse of free trade

Synopsis

Submitted to

Ms. Seema Siddiqui

Faculty of Law.

Submitted by

Abhishek Singh

Roll No. 135

Section B

7th Semester

SCOPE OF THE PROJECT

The scope of this project is to establish the hypothesis that the in order to improve the economy of underdeveloped nation there is a need of abolition of free trade for them by developed countries. The project shall consider various research works, articles, and trade statistics to prove the hypothesis.

RESEARCH METHODOLOGY

The methodology applied for this research is exploratory and theoretical. It explores the reasons why free trade is unnecessary in trading with underdeveloped nations.

Objective

The objective of this project is to prove that by abolition of free trade the underdeveloped nations will be benefited and also their economy.

Hypothesis

Developed countries misuse free trade barriers to economically fight against poor and undeveloped countries. Free trade barriers correspondingly help advanced states to take advantage of poor nations. In particular, developed countries use trade barriers in those fields in which they cannot compete with undeveloped and underdeveloped countries. This odd unevenness in the misuse of free trade barriers leads to a large gap between advanced and undeveloped states. This large gap favors developed countries economies. This deterioration and weakening of poor and developing nations economies can be clearly seen repeatedly. However, this is not fair. As Edmund Burke, a great British philosopher, said, Free trade is not based on utility, but on justice (Burke).

The questions are: has this statement been true and implemented effectively and efficiently in order to create a win-win scenario for both advanced and developing countries? Have free trade concepts and their components, in particular free trade barriers, helped poor and developing countries to stand at a good economic position around the world? The answer to above questions is No! Unfortunately, free trade has been misrepresented to people around the globe such that they think it can bring well-being for undeveloped and developing nations.

Free trade barriers used by developed states also are not defined under the doctrine of justice. All negative impacts, caused by implementation of free trade barriers, result in the third world and poor countries being dependent on advanced nations. Moreover, this situation helps developed countries to influence poor and developing countries economies and to dominate their markets. Developed countries misuse free trade barriers, such as tariffs, subsidies and import quotas as weapons against poor countries to make them dependent, to compromise their emerging economies, and to monopolize their markets.

Method

This project involves study and review of various articles and law reviews published in India as well as other online forums for public review along with certain documents from international trade forums.

Sources

The sources that have been taken up for this project are various articles published in newspapers and international trade law journals.

LITERATURE SURVEY

Mankiw, N. Gregory.Principles of Macroeconomics.South-Western College Publication, 2004.

Nickels, William G., James M. McHugh and Susan M. McHugh.Understanding Business.New York: McGraw-Hill Irwin Press, 2005.

Todaro, Michael P. and Stephen C. Smith. Economic Development. Todaro, Michael P. and Stephen C. Smith.Economic Development.Addison Wesley, 2009. 839.

[footnoteRef:1] [1: Vol 17 (2001) 233 - 279]

TENTATIVE CHAPTERIZATION

1. Introduction

2. Tariffs

3. Subsidies

4. Negative Effect of free trade

5. Changes in International Trade in respect to free trade

6. Conclusion

CONCLUSION

In conclusion, free trade barriers, such as the implementation of tariffs, subsidies and import quotas by advanced countries, have been employed to defeat newly established economies of poor or developing countries. This leads to a major gap between advanced and poor nations, and developed economies are always better off in this situation. Free trade concept and its components, free trade barriers, ought not to be utilized to achieve advanced economies interests. Free trade makes poor countries dependent on developed countries to compete and survive, as wealthy countries use free trade barrier policies to promote their own economies. It also degrades poor countries domestic manufacturing capability due to their inability to compete with foreign manufacturers who impose trade barriers. Without a doubt, according to WTO practices, most of free trade barriers are illegal. Consequently, many countries, in particular advanced states, should not implement illegal free trade barriers.

Bibliography

ContributionI will research in this project the origin of free trade and its pros and cons in respect to international trade law. I will try to contribute the concept that many think only the advantage of free trade but not its disadvantages so this this research will help us to know the same.