We have free markets here but there is also government regulation of these markets. For example this week the Feds will make a major change in our labor markets by allowing Mexican truckers to drive here. This also changes our trucking markets by allowing in new competitors from Mexico
History is full of currency collapses and drastic devaluations. We are bound to repeat this due to our huge foreign borrowings. This day of reckoning has been delayed due the USD status as reserve currency and our military power. If it were up to me, tariffs, drilling for Alaskan oil, exploiting our coal reserves, making manufacturing easier here with less government hassles, and other measures would be instituted to close our trade deficits. I would not allow the trade deficit to just run its course
I agree that trade agreements are not free trade. These agreements are complex with some good provisions and some lousy provisions. Since we are in the WTO, we cannot just raise tariffs without instigating countering action. Although I have sympathy for some tariffs that have short lifetime, most tariffs never seem to end. For example, the sugar tariffs and ethanol tariffs just go on with terrible side effects. Because of the sugar tariffs, candy production is moving out of this country. The remaining products produced here use corn syrup, a poor substitute in my opinion.
The Mexican truck issue was part of the NAFTA agreement. I agree that this is a one-sided provision given the state of Mexican highways and lawlessness. It is part of NAFTA so we will be forced to allow Mexican trucks. The Mexican drivers should speak English and the trucks should pass appropriate safety standards. I understand that individual states will enforce safety standards on the trucks. I am also concerned about transport of illegals and drugs. If reasonable inspections are not in place, we will have significant problems.
The extension of trade agreements to labor movement is controversial. I think that most economists view labor as just another factor of production. Most economists would favor open borders and less regulation on labor movement. However, Milton Freedman understood the uniqueness of labor as a factor of production due to the modern welfare state. Open borders is incompatible with the modern welfare state.