The Nobel Prize-winning economist Paul Samuelson argued that contrary to the standard interpretation,in certain circumstances the theory of comparative advantage predicts that a rich country might actually be worse off by switching to a free trade regime with a poor nation.

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Samuelson's argument, known as the "new trade theory," suggests that a wealthy nation may face negative consequences from free trade with a less-developed country because the latter may be able to produce certain goods more efficiently due to economies of scale or specialized knowledge. This can lead to a loss of high-paying jobs in the wealthy nation's industries and a decrease in its overall economic welfare.

The Nobel Prize-Winning Economist Paul Samuelson Argued That Contrary to the Standard