Free Trade Agreement
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A Free Trade Agreement is a trade agreement that aims at reduced cross-border trade restrictions.
- AKA: FTA.
- Context:
- It can (typically) make a market more Economically Efficient.
- It can (often) result in highly unequal Economic Redistribution (to the rich).
- Example(s):
- NAFTA.
- …
- Counter-Example(s):
- See: Free Trade Zone, Offshoring, Globalization.
References
2014
- http://www.trade.gov/fta/
- Free Trade Agreements (FTAs) have proved to be one of the best ways to open up foreign markets to U.S. exporters. Trade Agreements reduce barriers to U.S. exports, and protect U.S. interests and enhance the rule of law in the FTA partner country. The reduction of trade barriers and the creation of a more stable and transparent trading and investment environment make it easier and cheaper for U.S. companies to export their products and services to trading partner markets. In 2014, 47 percent of U.S. goods exports went to FTA partner countries. U.S. merchandise exports to the 20 FTA partners with agreements in force totaled $765 billion, up 4 percent from 2013. The United States also enjoyed a trade surplus in manufactured goods with our FTA partners totaling $55 billion in 2014.
2007
- (Blinder, 2007) ⇒ Alan S. Blinder. (2007). “Free Trade's Great, but Offshoring Rattles Me.” In: The Washington Post, 2007-May-06.
- QUOTE: I'm a free trader down to my toes. … I have stuck my neck out and predicted that the offshoring of service jobs from rich countries such as the United States to poor countries such as India may pose major problems for tens of millions of American workers over the coming decades. In fact, I think offshoring may be the biggest political issue in economics for a generation.
When I say this, many of my fellow free-traders react with a mixture of disbelief, pity and hostility. Blinder, have you lost your mind? (Answer: I think not.) Have you forgotten about the basic economic gains from international trade? (Answer: No.) Are you advocating some form of protectionism? (Answer: No !) Aren't you giving aid and comfort to the enemies of free trade? (Answer: No, I'm trying to save free trade from itself.)
- QUOTE: I'm a free trader down to my toes. … I have stuck my neck out and predicted that the offshoring of service jobs from rich countries such as the United States to poor countries such as India may pose major problems for tens of millions of American workers over the coming decades. In fact, I think offshoring may be the biggest political issue in economics for a generation.
2017
- (Wikipedia, 2017) ⇒ https://en.wikipedia.org/wiki/Free-trade_area Retrieved:2017-1-29.
- A free-trade area is the region encompassing a trade bloc whose member countries have signed a free-trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriersimport quotas and tariffsand to increase trade of goods and services with each other.
If people are also free to move between the countries, in addition to a free-trade agreement, it would also be considered an open border. It can be considered the second stage of economic integration.
- A free-trade area is the region encompassing a trade bloc whose member countries have signed a free-trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriersimport quotas and tariffsand to increase trade of goods and services with each other.