It seems to me that you need to divide the analysis into two stages to assess the costs and benefits of trade agreements and liberalization. Third, governments are waiving unfair subsidies. Many countries subsidize strategic industries such as energy and agriculture. This will reduce costs for these producers. It gives them an unfair advantage in exporting to another nation. Bilateral agreements can often trigger competing bilateral agreements between other countries. This may despise the benefits of the free trade agreement between the two original nations. Consumers in the country also benefit from lower costs. You can get exotic fruits and vegetables that can become too expensive without the agreement. This is why international trade rules established in free trade agreements (FTA) must be used strategically. If you are skeptical about this conclusion, consider the alternative.

We could have tariffs that cause economic harm to everyone, but with targeted benefits for the few beneficiaries. Under this policy, costs will outweigh the benefits and deteriorate society in terms of economic prosperity. Going back to the example of the Canadian dairy sector, we can take all Canadians and give them to the dairy industry, but we are reducing overall well-being. If someone asks, “Are tariffs good for Canada?”, I think the correct answer is, “Overall, they are not, because they have high costs across society, although some influential interest groups will benefit.” (It is also interesting to note that this is the right answer to any question about economic policy changes: overall, the answer is X, but some groups are helped and others are hurt.) The pros and cons of free trade agreements have an impact on employment, business growth and living standards: the impact of trade agreements on consumers is an area somewhat neglected by the latest research. One of the central principles of the international economy is that reducing barriers to trade increases prosperity. Trade agreements between countries reduce trade barriers for imported products and should, in theory, provide consumers with well-being gains through increased diversity, access to higher quality products and lower prices.