Can we really benefit from reducing the trade barries ?

Abstract EN

The debate these days evolves around free trade agreements and the good things they will bring about .

The consensus is that all would benefit from reducing trade barriers .

Yet , there are some who argue against the removal of trade barriers , insisting that it would at best harm the growing and yet needs nurturing industries , and impacting severely the chances of these infant industries to compete .

They also contend that developed countries tend, to restrict trade and resort to such measures that eventually help their industries to capture larger market shares .

The most cited example for the latter group , is the one pertaining to commercial aircraft industries in Europe and the United States , where the governments of these countries collectively maintain not to include these industries in any free trade agreement .

Using the theory of intra - industry trade , in this paper we opt to show that the argument against removing trade barriers does not lack reason after all .