Question

Are “free trade” agreements in the best interests of the United States?

Answer 1

In my opinion, “free trade” agreements are in the best interests of the United States. These agreements regulate tariffs, taxes and duties that nations impose on the imports as well as exports. NAFTA is the most well-known U.S. regional free trade agreement. The free-trade agreements such as NAFTA knock down barriers that impede job creation and economic growth in the United States. The main benefit of free trade is that it permits the United States to generate substantial economic benefit from countries far smaller than our own. The success of NAFTA reflects that free-trade policies generate far more employment and income in the America than what occurs when officials of government “protect” domestic workers with anti-trade policies. Thus, from the perspective of U.S., the gains are straightforward as the country get more access abroad to sell it's competitive farm products, manufactured items and services.

Free trade agreements are designed in a way to improve the trade between two countries. America maintains an international manufacturing trade deficit with the world, however a manufacturing trade surplus with its free trade agreement partners. Also in today's scenario trade has become an increasingly important part of the economy of United States. U.S. exporters sell more American goods abroad than ever before — and imports provide U.S. consumers more choices at lower prices. U.S. people have higher living standards as the trade enables them to afford more goods. For America, free trade agreements open markets abroad without vital changes in current U.S. trade restrictions. The reason is that with few exceptions, America trade barriers are already low and U.S. regulatory requirements protecting workers, consumers, and the environment are high. The main benefits of “free trade” agreements are as follows:

-- Lower government spending. Numerous governments subsidize local industry segments. Due to the removal of subsidies, such funds can be put to better use.

-- Foreign direct investment. Potential investors will flock to the nation and thus provide capital for the expansion of local industries and boost domestic businesses. This also brings in U.S. dollars to for several formerly isolated countries.

-- More dynamic business climate. Usually the firms were protected before the agreement. These local industries risked becoming stagnant and non-competitive on in the international market. By this way, which means the removal of the protection they have the motivation to become true global competitors

-- Increased economic growth. The Trade Representative Office of America have observed an increase in economic growth of the nation.

-- Expertise. The domestic companies have less expertise than ?Global companies to develop local resources. That's especially true in manufacturing, mining, and oil drilling. Free trade agreements permit international firms access to these business opportunities. The local firms with multi-nationals partner can develop the resources, and train them on the best practices

-- Technology transfer. The latest technologies can be accessed by local companies also and thus may receive access to from their multinational partners. When these grows grow, employment increases. Multi-national companies give job training to local employees and enhance their skills