LESSON 1 ECONOMIC GLOBALIZATION AND TRADE

WHAT ARE FREE TRADE AGREEMENTS?

• Are trade pacts that aim to reduce trade constraints like tariffs, quotas and other limitations while establishing a framework for International cooperation between participating nations.

• Help to enhance commercial prospects, consumer welfare and economic growth and integration.

• They aid in managing commercial disputes and fostering international cooperation.

ACCORDING TO WORLD TRADE ORGANIZATION

• There are currently more than 300 regional trade agreements.

• Two well-known FTAs - Trans-Pacific Partnership (11 nations in Asia-Pacific area) and North American Free Trade Agreement (US, Canada, Mexico)

• FTAs can cover a variety of topics, including trade in goods, trade in services, investments, intellectual property, and government procurement.

• Here are some examples of FTAs:

  1. United States-Australia Free Trade Agreement
 (AUSFTA): A bilateral FTA between the United States and Australia

United States-Australia Free Trade Agreement
 (AUSFTA)

A bilateral FTA between the United States and Australia

300 regional trade agreements

How many regional trade agreements are there?

Two well-known FTAs

1. Trans-Pacific Partnership (11 nations in Asia-Pacific area)

2. North American Free Trade Agreement (US, Canada, Mexico)

Variety of topics, including trade in goods, trade in services, investments, intellectual property, and government procurement

FTAs can cover a?

PRO

FTAs seek to eliminate trade restriction, such as tariffs and quotas among nations. (PRO or CON?)

PRO

The accords are designed to promote economic integration and growth while striving consumers and businesses additional opportunities. (PRO or CON?)

CON

FTAs has trade problems i.e. labor standards, environmental protection in specific industries or products. (PRO or CON?)

CON

FTAs may harm local economies, communities and income inequality as well as labor and environmental norms. (PRO or CON?)