The Money of Free Trade Agreements

Free trade agreements can seem confusing if you do not know much about them or how they work. This concept basically works by eliminating the tariffs, restrictions and taxes on imported items that come into a country. Remember that imports are goods that come into a country and exports are goods that leave a country, so it works both ways with FTA's. FTA's are governed by the World Trade Organization and are the second step towards a six part plan for global economic integration.

FTA's allows companies to enter the global market and compete more easily. They can do this if the importing country lowers tariffs, taxes and restrictions, along with the discriminatory laws and regulations that may be keeping their product from the market. Skilled trades and a trade deal would have been out of the question without FTAs in place.

Did you know that one quarter of the United States gross domestic product comes from exporting goods, services and skilled trades to other countries? That is twelve million jobs. One in five manufacturing positions is created to help fill this need. Free trade agreements can help accelerate an economy's growth but it is more than just the United States that is influenced, as they have an effect on other countries as well.

Over fifty-seven percent of our gross domestic products in exports go to non-FTA countries. Imagine the revenue that would be saved should we enter into a trade deal with these countries. If you want another staggering figure then try this one: over ninety-two percent of the world's gross domestic products go to non-FTA countries. However, there are thirty-four countries that are involved in one free trade agreement or another. For example, the Canada Free Trade Agreement with the US. developed into the North American Free Trade Agreement, involving Canada, the US and Mexico.

The good news is that the United States and the World Trade Organization is continuously in negotiation with other countries to enter into free trade agreements. Currently, we are in negotiations with Andean, FTAA, Thailand, S. Africans Customs Union and the United Arab Emirates. Hopefully, this will mean more revenue for our economy and better labor laws and working conditions for workers in these countries, once the borders of trade have ceased to exist.

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