Write A Short Note On Free Trade Agreement

A free trade agreement is a pact between two or more nations to reduce barriers to trade between imports and exports. Under a free trade policy, goods and services can be bought and sold across international borders without government tariffs, quotas, subsidies or bans. The United States has another multilateral regional trade agreement: the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). This agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua eliminated tariffs on more than 80% of U.S. exports of non-textile goods. Free trade entered what the United States was to become as a result of the American War of Independence. After the British Parliament passed the Prohibitory Act, which blocked colonial ports, the Continental Congress responded by effectively declaring economic independence and opening American ports to foreign trade on 6 April 1776. According to historian John W. Tyler, “trade was imposed on Americans, whether they like it or not.” [35] Free trade is a largely theoretical policy where governments impose absolutely no tariffs, taxes or tariffs on imports or export quotas. In this sense, free trade is the opposite of protectionism, a defensive trade policy designed to exclude the possibility of foreign competition. The world has achieved almost more free trade in the next round, known as the Doha Round Trade Agreement.

If successful, Doha would have generally reduced tariffs for all WTO members. Few issues divide economists and the extent of public opinion, as does free trade. Studies show that economists at U.S. university faculties are seven times more likely to support a free trade policy than the general public. In fact, the American economist Milton Friedman said: “The economic profession was almost unanimous on the question of the desire for free trade.” The second way of looking at free trade agreements as public goods is related to the growing trend that they are “deeper”. The depth of a free trade agreement relates to the additional types of structural policies it covers. While older trade agreements are considered more “flat” because they cover fewer areas (for example. B tariffs and quotas), recent agreements cover a number of other areas, ranging from e-commerce services and data relocation. Since transactions between parties to a free trade agreement are relatively cheaper than those with non-parties, free trade agreements are considered excluded.

Now that deep trade agreements will improve the harmonization of legislation and increase trade flows with non-parties, thereby reducing the exclusivity of free trade agreements, next-generation free trade agreements will take on essential characteristics for public goods. [19] Some opponents of free trade support free trade theory, but oppose free trade agreements as applied.