http://enperublog.com/2007/12/05/us-peru-free-trade-agreement-approved-my-thoughts/ All you could ever want to know about Peru Sun, 26 Feb 2023 22:03:16 +0000 hourly 1 http://enperublog.com/2007/12/05/us-peru-free-trade-agreement-approved-my-thoughts/comment-page-1/#comment-16700 Sun, 03 Jan 2010 23:10:28 +0000 http://enperublog.com/?p=782#comment-16700 […] the signing of the Free Trade Agreement with the United States, Peru couldn’t afford to get rid of its massive car import taxes over […]

]]> http://enperublog.com/2007/12/05/us-peru-free-trade-agreement-approved-my-thoughts/comment-page-1/#comment-249 Sat, 26 Jul 2008 03:25:42 +0000 http://enperublog.com/?p=782#comment-249 Interesting thoughts, much of which is true. However, we need to define efficient production within this argument. Within the confines of capitalism ‘efficient’ usually means production at the cheapest cost with little or no regard for social consequence. There is a tendency to also regard ‘efficent’ as less labour used thus creating a surplus of labour which in turn drives down wages and working conditions. Capitalism as a free market theory does not work, as is evident from your own arguments, it would be foolish to rely on a free trade agreement which you so rightly point out is no such thing, to increase the distribution of wealth in Peru. Capitalism relies on exploitation of one vested interest by another, this can be bosses exploiting workers or workers exploiting their position to halt production and demand a greater slice of the ‘pie’. It is ‘market forces’ that determin who exploits who at any given moment, it should however, be noted that those with power are usually able to exploit those without and this usually means that the poor are exploited. The key to all this is that exploitation is the driving force of capitalism, this is true and a fact. What i think is correct about your argument is that capitalism needs to be mitigated by the terms of any ‘free’ trade agreement and this means that US markets need to be open to Peru and Peru needs to make sure that there are no disabling social consequences as a result of this agreement. Thus Peru needs to be aware of the limitations of this agreement and continue to work to improve it’s terms. There is no simple answer to the points you make or the ones i have rasied, it would be interesting if anyone else has a view.

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