Sen. Chuck Grassley, R-Iowa, discussed the importance of international trade for developing economies and fielded questions from ISU students and Ames community members in the Sun Room of the Memorial Union on Sunday afternoon.

Grassley emphasized the role and effectiveness of international trade promoting stability in countries.

He used the Great Depression as an example of what can happen when nations seek to isolate each other and said post-war trade policy has been an effort to secure peace by eliminating barriers to trade.

“Trade brings peace,” he said. “History has shown that a strong correlation exists between peace, trade and democracy.”

There is a misconception that trade with poor nations leads to exploitation of Third World countries, he said.

“The fact is, when we trade with developing nations, they win and we win,” Grassley said.

He said North Korea and Zimbabwe have walled themselves off from the world and, because of this isolation, they are becoming poorer.

On the other hand, he said, countries that embrace trade, like Chile and Taiwan, grow more prosperous because they see the value of trade.

Grassley said trade-based economies enable countries to combat poverty, receive health care and promote democracy.

Government is a hindrance to trade freedom, he said.

“Free trade leads to free people,” he said.

“International free trade empowers people, not governments.”

Grassley said that free trade helps in breaking down the government’s control over resources and frees up people and consumers to make their own choices.

He called individual business owners the backbone of international trade.

Grassley said the Senate is working hard to advance trade, especially in the Middle East, which would involve Israel, Jordan, Morocco and Bahrain.

He said a Middle East free-trade agreement would bring stability and expand economic opportunities for these countries.

Keith Dexter, junior in agricultural education, agreed with Grassley on the international trade issues and also believes trade can bring peace.

“If you have high economic activity, then people are making more money; they’re producing more jobs and people are happier,” Dexter said.

Louis Kishkunas, junior in political science and president of the ISU College Republicans, said he liked Grassley’s ideas on free trade. He said he liked how Grassley took the audience through the process of free trade, showing that trade means ideas, peace and people having the right to choose.

“There’s $500 billion in new wages just because developing countries are trading with each other,” Kishkunas said.

Grassley said he sees international trade as a win-win situation for every nation.

In order to help developing nations, he said, we have to look at what has made America’s standard of living better.

“Our challenges today are great,” Grassley said.

“But no greater than those faced by our forefathers.”

Ames was Grassley’s second stop on an 18-stop tour to Iowa communities to speak about the importance of international trade.