by Gene Denardo

Created on: May 02, 2010   Last Updated: May 03, 2010

The biggest misunderstanding underlying the concept of "free trade" is that free trade has to somehow be implemented or instituted, usually by the state. This is the polar opposite of the truth: free trade is the natural state of humanity. Free trade can only be taken away or diminished, it cannot be somehow enhanced or magnified.

We are born on this earth to engage in free trade and exchange. The ignorance of this basic fact is evident in the belief that states or nations must go through some great process or sign elaborate treaties and documents to institute free trade.

This is equivalent to some government declaring that all citizens now have the right to "free air". Treaties and documents seek to control and limit trade, not to enhance it.

In collusion with these misunderstandings is the idea that "nations" engage in free trade. Again, this is as far from reality as is possible. The idea that large "corporations" engage in and promote free trade is connected to this same principle.

Multinational corporations usually engage in controlled and planned trade immediately after the signing of such documents. Free trade agreements are almost always promoted to encourage controlled trade and benefit multinational corporations.

True free trade is simply unbridled and consentual exchange between two or more humans. This can involve their time as labor or some product of their labor.

This type of free trade or exchange has probably been going on since day one. No documents or treaties are necessary to complete this simple and natural transaction.

The world didn't somehow become complicated and therefore necessitate copious paperwork to ensure free trade. Paperwork, documents or treaties are always limitations on what humans do naturally on the earth, engage in exchange.

Free trade is defined fundamentally as unrestrained exchange free of force, either internal force within the exchange or external force. If we accept this definition, then any treaty, agreement or document is an "outside force" limiting the scope or "freedom" of the exchange or trade.

Promotion of free trade is always an oxymoron. Free trade cannot be "promoted", as it already exists in our natural state. However, controlled and forced trade certainly can be promoted in many ways.

As mentioned, treaties and documents seek to control and promote certain types of exchange in order to benefit some and disadvantage others. This is always a loss of overall exchange freedom, not a gain.

To understand this,

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