* With the removal of trade barriers structural unemployment may occur in the short term. The Australian textile industry will face this problem when tariffs are reduced from 25 percent to 7 percent in 2005. However it is interesting to note that when tariffs increased greatly in the period 1974-1984 for textiles and footwear employment in the sector fell by 50 000 for the same period. Increased domestic economic instability from international trade cycles, as economies became dependent on global markets. The Asian economic crisis in 1998 and economic slowdown in the global economy in 2001 illustrate this situation. * International markets are not a level playing field as countries with surpluses may dump them on the world markets below cost. Some efficient industries may find it difficult to compete for long periods under such conditions. * Developing or new industries may find it difficult to become established in a competitive environment with no short-term protection polices by governments. * Free trade can lead to pollution and environmental problems as companies fail to include these costs in the price of goods