Part 5/6:
The Power Imbalance of Free Trade Agreements
At the crux of the problem lies the structure of free trade agreements, which often compel countries in the global South to acquiesce to demands set by wealthier nations. This power imbalance may force developing countries to enact policies and regulations that favor foreign investments—deemed “investor-friendly”—often to the detriment of local communities and economies.
Unlike wealthier nations like France, which can afford to reject unfavorable terms, many countries in the global South find themselves cornered and unable to refuse such agreements, resulting in a legacy of “raw deals.” The inability to negotiate from a position of strength often leads to exploitation, echoing the disparities rooted in colonial history.