The Origin of Modern Free Trade Trade deals are not just about tariffs, quotas, or GDP growth. They originated from the idea of economic interdependence to foster world peace after World War II. The General Agreement on Tariffs and Trade (GATT) in 1948 created globalization and explosive global GDP growth till the late '70s. In the '80s, a new Bretton Woods led to a focus on global efficiency through non-tariff barriers.
Changing Nature of Global Trade Modern trade is governed by ideas like aligning domestic laws with global efficiency rather than traditional trade concepts. Examples include disputes over genetically modified beef exports and dolphin-free tuna labeling that raise questions about national sovereignty, local rule, environmental regulations, racial equality preservation while promoting free movement across borders.