Free trade agreements (FTA's) are an integral practice within an ever-growing globalized market economy, and, in America especially, free trade agreements have resulted in huge economic gains. As stated by the International Trade Administration, the "reduction of trade barriers and the creation of a more stable and transparent trading and and investment environment make it easier and cheaper for the U.S. to export their products and services." From this statement, it is clear that the U.S. has benefitted greatly from past FTA's with countries that range from each end of the globe.
Here are some examples:
1)
Name of agreement The Central American-Dominican Republic Free Trade Agreement
Countries involved United States, Costa Rica, Dominican Republic, Guatemala, Honduras, Nicaragua, El Salvador. (Arnadeo, 2017)
Date agreement implemented August 5, 2004 (Arnadeo, 2017)
Pros of agreement 71% increase in trade of goods since 2005. 4.7% economical growth in Nicaragua (2014). Greater foreign investment in Costa Rican telecommunication and insurance industries. Growth of gold and silver exports in Dominican Republic, as well as an increase in tourism. (Arnadeo, 2017)
Cons of agreement This trade deal resulted in a massive upheaval due to an increase in exports of low-cost grains and a change of location for low-cost labor. Many jobs moved overseas to countries like China and Vietnam. (Arnadeo, 2017)
2)
Name of agreement Trans-Pacific Partnership
Countries involved United State and 11 countries that border the Pacific (Arnadeo, 2017)
Date agreement implemented February 4, 2016 (Arnadeo, 2017)
Pros of agreement The creation of jobs due to an increase in exports and economic growth. Specifically, this agreement would help to improve the plastics, machinery, auto, and agricultural industries. (Arnadeo, 2017)
Cons of agreement A majority of the growth that would incur would primarily benefit higher wage earners. This is a result of an increase of production of textiles and cheap goods. (Amadeo, 2017)
3)
Name of agreement Transatlantic Trade and Investment Partnership
Countries involved United States and the European Union (Arnadeo, 2017).
Date agreement implemented In progress... (Arnadeo, 2017)
Pros of agreement Economic growth and the creation of up to 2 million jobs. This agreement would also strengthen the relationship of Transatlantic partnerships in the face of a rise in economic power from China, India, and other Pacific nations. (Amadeo, 2017)
Cons of agreement A growth in the European economy could result in a reduction of jobs for American workers. Companies like Boeing and those that produce French champagne would be especially damaged. (Amadeo, 2017)
4)
Name of agreement Israel Free Trade Agreement
Countries involved United States and Israel (Arnadeo, 2017).
Date agreement implemented 1985 (Arnadeo, 2017)
Pros of agreement Resulted in a decrease in trade restrictions that limited exports between the two countries. Also resulted in greater transparency in regard to trade regulations. (Amadeo, 2017)
Cons of agreement The strengthening of ties between Israel and the U.S. resulted, in part, in the alienation of Middle Eastern and neighboring countries like Palestine. (Amadeo, 2017)
5)
Name of agreement Jordan Free Trade Agreement
Countries involved United States and Jordan (Arnadeo, 2017)
Date agreement implemented December 17, 2001 (Arnadeo, 2017)
Pros of agreement Reduced trade barriers in the meat and poultry industries, specifically. Also benefitted Jordan's agricultural industry. (Amadeo, 2017)
Cons of agreement May have resulted in an increase in violations of labor-rights due to the increase in production of cheap goods. (Amadeo, 2017)
In conclusion, all of the aforementioned trade agreements have resulted in an increase in the production and export of trade goods between the countries involved. Consequently, all of the countries involved have experienced economic growth to some degree since these agreements have been signed into action. Unfortunately, this economic growth primarily benefits higher-wage earners as free trade agreements tend to help more industrialized countries. As a consequence, economies that cannot compete to the same degree tend to suffer. (Arnadeo, 2017)
References
Amadeo, K. (n.d.). The Top 12 U.S. Bilateral Trade Agreements. Retrieved June 26, 2017, from https://www.thebalance.com/what-are-bilateral-trade-agreements-pros-cons-and-list-3305911
Amadeo, K. (n.d.). Will the World's Largest Trade Agreement Be Signed This Year? Retrieved June 26, 2017, from https://www.thebalance.com/transatlantic-trade-and-investment-partnership-ttip-3305582
Amadeo, K. (n.d.). The 2004 Trade Agreement That Made Bananas Cheaper. Retrieved June 26, 2017, from https://www.thebalance.com/what-is-cafta-3305580
Amadeo, K. (n.d.). What Does Trump's Executive Order to Withdraw from the TPP Mean? Retrieved June 26, 2017, from https://www.thebalance.com/what-is-the-trans-pacific-partnership-3305581
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