Sometimes consumers are better off, producers are less well off, consumers are less well off and producers are better off, but the imposition of trade restrictions results in a net loss to society, because losses due to trade restrictions are greater than the profits generated by trade restrictions. Free trade creates winners and losers, but the theory and empirical evidence shows that free trade gains are greater than losses.  Like investment and capital exchanges, economists did not agree on trade in services after World War II. In fact, trade in services was seen almost as an oxymoron by early economists such as Adam Smith and David Ricardo, who believed that services were non-negotiable. This was also the view of trade negotiators for three or more decades after the introduction of the GATT. Academics, governments and stakeholders discuss the relative costs, benefits and beneficiaries of free trade. The European Union is now a remarkable example of free trade. Member States form an essentially borderless unit for trade purposes, and the introduction of the euro by most of these countries paves the way. It should be noted that this system is governed by a Brussels-based bureaucracy, which has to deal with the many trade-related issues that arise between the representatives of the Member States. Two factors that can lead to a current account deficit or surplus are a nation`s level of savings and investment relative to consumption and the exchange rate between its currency and that of its trading partners. Conversely, the level of a country`s savings and investment relative to its consumption is linked to its trade balance. Joseph Stiglitz sums up: “Trade deficits and foreign loans are two sides of the same coin.
If borrowing from abroad increases, the trade deficit will also increase. This means that if government lending increases, private savings do not increase accordingly (or private investment decrease accordingly), the country will have to borrow more abroad and the trade deficit will increase. The reserve country can be considered an export of T-Bills in exchange for the importation of goods and services.  However, in the event of trade diversion, a member makes sales at the expense of a more competitive producer in a country that is not a member of the bloc, simply because its products enter the market of its partner duty-free, while the non-member producer, more competitive, is subject to a discriminatory obligation.  Third-country exporters with a comparative advantage under equal competitive conditions are losing their commercial character.