Welcome to Need to Know, your Saturday dive into thought-provoking research from think tanks, academics, and leading policy thinkers in Canada and around the world, curated by The Hub. Here’s what’s got us thinking this week.
Canada is a trading nation. In 2022, the value of exported goods and services totaled more than 30 percent of Canada’s GDP, and Canada has benefited immensely from a rules-based trade order aimed at reducing tariffs. But recent years have seen a backlash against free trade and globalization. President-elect Trump has proposed implementing tariffs of up to 20 percent on goods from outside the U.S. and upwards of 60 percent on China, which would completely up-end global trade.
Even Ontario Premier Doug Ford recently chimed in and recommended excluding Mexico from a potential Canada-United States-Mexico Agreement (CUSMA) renegotiation, despite Trump ostensibly reaffirming his support for the agreement this week. With the future of globalization and freer trade in flux, it’s a good time to take a step back and look at some recent first-principles cases for and against free trade.
The conservative case for globalization
In a publication for the Cato Institute, former U.S. congressman Jeb Hensarling makes the conservative case for free trade. Drawing on intellectual traditions from figures like Adam Smith and Edmund Burke, the Republican argues that free trade aligns with conservatism’s long-standing commitment to individual liberty, economic freedom, and limited government.
Economically, free trade benefits consumers through greater choice, lower prices, and increased innovation. It fosters competition, which drives efficiency and prosperity. Hensarling also emphasizes its geopolitical advantages, noting that trade strengthens alliances and promotes global stability by creating economic interdependence between nations.
Responding to critics who argue that globalization threatens national security, Hensarling counters that a strong economy—bolstered by free markets—provides the resources necessary for robust defence capabilities. He warns that protectionism often serves special interests at the expense of the broader public, enabling cronyism and stifling economic growth.
Hensarling also makes a moral argument, viewing trade as an extension of personal freedom. He asserts that individuals should have the right to engage in voluntary exchanges across borders, unimpeded by government intervention.
Ultimately, Hensarling champions free trade as a path to prosperity, stability, and freedom. He urges conservatives to reject protectionism and embrace open markets, reaffirming that globalization is consistent with conservative ideals.
