The principle of “let it work, let it pass” is one of the basic pillars on which capitalism is based, and this principle means refraining from governments’ interference in commercial activities, and it is one of the fundamental laws supported by economic liberalism, as it opposes government interference in the market.
As for free trade, it indicates policies that allow imports and exports to flow without the imposition of customs duties or commercial barriers.
Within the framework of free trade agreements, a group of countries agree to reduce or remove customs tariffs and other commercial restrictions, which facilitates trade exchanges between them.
According to the World Trade Organization (WWT), these policies allow all countries to benefit from low prices and enhance access to the resources available to commercial partners, which reflects one of the most important manifestations of capitalism.
The World Trade Organization confirms that reducing commercial barriers is one of the most effective means of encouraging trade, and these barriers include customs duties (customs tariffs), in addition to procedures such as banning import or shares system that imposes restrictions on selective quantities.
But the commercial policies announced by US President Donald Trump are clearly inconsistent with these principles, as he seeks to restrict global trade by imposing high customs definitions on a wide range of goods and imports from several countries, led by China, Mexico, Canada and European Union countries and others.
The US economic decisions are very impressive because the American economy is the largest global economy, and it contributed 26% of global GDP in 2023. The US GDP reached 28.78 trillion dollars in 2024, compared to about 110 trillion dollars in the global gross domestic product value.
In 2022, US commodity and services exports amounted to more than 3 trillion dollars, while imports recorded about 4 trillion dollars, that is, the volume of US trade is about 7 trillion dollars, while the global trade volume reached about 32 trillion dollars, so the US share of global trade constitutes approximately 22%.
Capitalist pillars
Capitalism is often defined as an economic system based on private ownership, as individuals and companies have assets and control them according to their interests.
The price is determined in the markets according to the law of supply and demand, which contributes to achieving economic efficiency and serves the general interests of society.
The basic feature of capitalism is to seek profit, and as the Scottish philosopher and economist Adam Smith, nicknamed “Abu Al -Economy Modern” in his book “The Wealth of Nations” in 1776 “We do not expect to obtain dinner by butcher or baker, but rather through their interest in their own interests.”
In the sense that each party in the commercial treatment seeks to achieve its own interest, but no party can achieve its goals without meeting the needs of the other party, and this balance between the self -interest and rationality of the economic province leads to enhancing economic prosperity.
Capital basic pillars according to the International Monetary Fund:
- Private ownership: It allows individuals and companies to possess material assets such as lands and homes, in addition to the unfinished assets such as stocks and bonds, and Adam Smith asserts that individuals contribute to achieving the public good.
- Competition: It guarantees the freedom to enter and exit the markets, which enhances the social welfare of both producers and consumers.
- Market mechanism: Prices are determined in an emotional way by interacting between buyers and sellers, without direct intervention by the state or the government.
- option: Individuals and companies have freedom of consumption, production and investment, as consumers can choose the most appropriate products for them, and investors have their money towards the most profitable projects, and the workers have to move to jobs that provide better wages and conditions.
- A limited role for the government: The government’s responsibility is limited to protecting the rights of individuals and ensuring an organized environment that supports market efficiency, without direct intervention in its mechanisms of work.
The most important principles of free trade
- Treating the commercial partners equally
The principle of the “most careful state treatment” (MFN) is based on preventing countries from distinguishing between its commercial partners, so that any commercial concession that gives it to a country to all members of the World Trade Organization is applied.
Although some exceptions are allowed – such as free trade agreements or preferences provided to developing countries – these cases are subject to strict conditions.
- Treating imported and local goods evenly
This principle is known as “national treatment”, which ensures that local products are not given an unfair competitive advantage compared to importing after entering the markets.
This also applies to intellectual services and property rights, but the imposition of customs duties on imports is not considered a violation of this principle, as it applies only after the product enters the market.
- Trade liberalization through negotiation
Reducing commercial barriers is one of the most important ways to enhance trade, and since the establishment of the “Ghat” agreement in 1947, several negotiating rounds, the last of which was the Doha tour, which focused on supporting trade in developing countries.
The gradual liberalization allows markets to countries to gradually reduce commercial restrictions, giving them enough time to adapt to economic changes.
- The ability to predict and stability
The commitment not to raise commercial barriers create a stable business environment, stimulating investment, enhancing competitiveness and supports job creation.
The World Trade Organization is keen to ensure transparency and adhere to international rules to enhance the ability to predict the markets.
- Enhancing fair competition
Although the World Trade Organization supports free trade, it allows in some circumstances to impose customs definitions or protectionist measures to ensure fair and unworthy competition, and to prevent monopolistic practices that may harm emerging economies.
Did Trump adhered to these principles or violated them?
In light of the trade policies pursued by US President Donald Trump, questions have escalated about the future of the World Trade Organization and the extent of the United States’ commitment to free trade principles.
In a report published by the New York Times entitled “The World Trade Organization has ended … what will happen for global trade now?”, The researcher and economist Keith Bradshar – who covered negotiations for the establishment of the organization between 1991 and 1993 – explains that Trump targeted international free trade rules that have existed since the 1940s.
The report indicates that by announcing Trump imposing new customs definitions on imports from several countries launched a direct attack on the free trade system, which was established after the Second World War.
“I can say that the World Trade Organization is over, but the most important question now is: How will the rest of the members interact? Will they defend the regime? Or will they also ignore the principles, items and main practices?”
How did Trump undermine world trade?
According to Bradcher’s analysis, Trump’s policies have negatively affected the World Trade System and threatened the role of the World Trade Organization, and the most prominent of these policies:
- Imposing new customs duties
Trump announced the imposition of customs definitions on imports from several countries, which is a direct attack on the free trade system that was established after the Second World War, and contradicts the principle of “let him work, let him pass.” - Replacing international drawings by American definitions
Trump believes that the United States will gain economic influence by replacing the American customs definitions of global definitions, which is a fundamental shift in the global trade system. - Challenge the rules of the World Trade Organization
Trump refused to adhere to the basic principle that obliges member states to treat commercial partners equally, which undermined the credibility of the World Trade Organization. - Disable the World Trade Organization
During his first term, Trump disrupted the organization’s work by preventing the appointment of judges in the Supreme Commission responsible for resolving commercial disputes, which led to institutional paralysis that made the organization unable to issue binding rulings. - The World Trade Organization accused the bias
Trump complained that the arbitration committees within the organization are biased against the United States and turned a blind eye to export benefits and protectionism followed by some countries, such as China. - The threat to impose unilateral customs duties
Trump threatened to take unilateral customs action without returning to international negotiating mechanisms, threatening the foundations on the general agreement for customs and trade definitions. - Targeting developing countries
Trump seeks to impose high customs definitions on developing countries with customs advantages, especially those that support their agricultural exports. - Fears of the outbreak of a global trade war
If other countries respond by imposing similar definitions, this may lead to a global trade war that undermines the global economy. - The negative effects on the global economy
The high customs duties may lead to the slowdown in the movement of global trade and the high prices, which threatens the principle of basic free trade that is based on providing products for consumers at the lowest prices.
Are we facing the end of the World Trade Organization?
Many experts believe that the World Trade Organization may lose its importance if the major economic forces – headed by the United States – continue to ignore their bases.
Trump’s unilateral commercial policies threaten the system that has supported the growth of the global economy for decades, and may lead to the disintegration of the global trade system, which puts the future of free trade in real danger.
The alternative that Trump puts off
Trump seeks to reshape the global commercial system by imposing American customs definitions and drawings instead of adhering to the rules of the World Trade Organization, and this trend depends on the strength of the American economy, as he sees that his country imports more than exported, and aims to amend this balance by imposing high definitions, seeking that other countries will not respond in the same way as fear of their exports.
Some experts believe that this shift may lead to brutal capitalism in which a few founders of major companies such as Elon Musk and Jeff Bezos control over the global economy.
This trend is manifested in its attempts to acquire strategic areas such as the Panama channel, the Ukraine mineral wealth, the Greenland Island, and the annexation of Canada, in addition to the displacement of Gaza residents and its transformation into a tourist destination.
