Question

1. Briefly describe the recent history of United States and world trade, and list the major U.S. trading partners.

Answer 1

Foreign trade of the United States comprises the international imports and exports of the United States, one of the world's most significant economic markets. The country is among the top three global importers and exporters.

The regulation of trade is constitutionally vested in the United States Congress. After the Great Depression, the country emerged as among the most significant global trade policy-makers, and it is now a partner to a number of international trade agreements, including the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO).

United States trade policy has varied widely through various American historical and industrial periods. As a major developed nation, the U.S. has relied heavily on the import of raw materials and the export of finished goods. Because of the significance for American economy and industry, much weight has been placed on trade policy by elected officials and business leaders.

Over the long run, nations with trade surpluses tend also to have a savings surplus. The U.S. generally has developed lower savings rates than its trading partners, which have tended to have trade surpluses. Germany, France, Japan, and Canada have maintained higher savings rates than the U.S. over the long run.

Some economists believe that GDP and employment can be dragged down by an over-large deficit over the long run. Others believe that trade deficits are good for the economy. The opportunity cost of a forgone tax base may outweigh perceived gains, especially where artificial currency pegs and manipulations are present to distort trade. Though the US trade deficit has been stubborn, and tends to be the largest by dollar volume of any nation, even the most extreme months as measured by percent of GDP there are nations that are far more noteworthy.

The United States is a partner to many trade agreements,

The United States has also negotiated many Trade and Investment Framework Agreements, which are often precursors to free trade agreements. It has also negotiated many bilateral investment treaties, which concern the movement of capital rather than goods.

The U.S. is a member of several international trade organizations. The purpose of joining these organizations is to come to agreement with other nations on trade issues, although there is domestic political controversy to whether or not the U.S. government should be making these trade agreements in the first place. These organizations include:

• World Trade Organization
• Organization of American States
• Security and Prosperity Partnership of North America

These are America’s top trading partners for 2017, ranked by total exchange of goods:

1. China – $636 billion
2. Canada – $582.4 billion
3. Mexico – $557 billion
4. Japan – $204.2 billion
5. Germany – $171.2 billion
6. South Korea – $119.4 billion
7. United Kingdom – $109.4 billion
8. France – $82.5 billion
9. India – $74.3 billion
10. Italy – $68.3 billion
11. Taiwan – $68.2 billion
12. Brazil – $66.5 billion
13. Netherlands – $60 billion
14. Ireland – $59.6 billion
15. Switzerland – $57.7 billion