You know it is not free trade when they need thousands of pages ot explain. NAFTA was harmful, and not free trade, and now the USA/Australia agreement is proving harmful.
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Preferential treatment can divert trade to the Australian market away from the most efficient and competitive suppliers towards suppliers who would only become competitive due to the special treatment they receive under the regime. This discrimination is part of the design of these agreements and is meant to give incentives for other countries to join the game and negotiate preferential deals of their own to negate the discrimination they face. Preferential agreements can also create efficient trade but only if the lowest cost suppliers are included under the arrangement.Yes, manipulating trade flows is the point of "free trade" agreements. An important tool in business is to keep definitions straight, so you have a better chance of thinking straight.
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