Free Trade Aids Economic Growth Essay

Submitted By Pguntaka1
Words: 1322
Pages: 6

Countries around the world have boosts and depressions in their economy at certain periods of times. America was the fastest growing nation in the world until its economy had a moderate drop in growth and was unable to compete with the other developing countries. Presently, the growth of the American economy is much less compared to a few years ago. America should establish more free trade agreements with foreign countries to help boost our economic growth, creates jobs, and sustain the growth of third world countries.Free trade does not only help our country to grow but also gives poor countries an opportunity to improve their economy.

The third world countries are accelerating their economic growth rate by establishing huge trade liberalization. However, The United States is delaying to establish more FTA’s with other nations and its current economic growth rate is fighting at 1.7%.The WTO talks about the growth of developing countries are outpacing the growth of the developed countries .“Once again, China’s GDP growth outpaced the rest of the world at 9.2% .Growth of gross domestic product (GDP, total production in the country) in the United
States was slightly faster than the average of all developed economies at
1.7%”(World Trade Organization).There can be a huge bump in our economy by establishing more FTA’s with foreign countries like developing countries. There is a visual fact of how we can improve our economy by establishing a FTA.NAFTA is evident to confirm how effective FTA’s are in real world. According to data from the office of the U.S. Trade
Representative (USTR), the United States' chief negotiator in foreign trade and a major booster of NAFTA and other free trade accords, the overall value of intra-North American trade has more than tripled since the agreement's inception. The office declares that from 1993 to 2006, trade among the NAFTA nations climbed 198 percent, from $297 billion to $883 billion and also that U.S. merchandise exports to our NAFTA partners grew more rapidly at 157 percent than our exports to the rest of the world, at 108 percent. Another FTA between Australia and U.S, which was concluded in 2005 helped to make a dramatic improvement in our economy. Since the agreement went into force in January 2005, the U.S.-Australia Free Trade Agreement has stimulated a 170% increase in the U.S. trade surplus with Australia (U.S
Department Of State). Our nation hesitated to implement the FTA between U.S and Colombia which resulted in tremendous impact on our economy. IFB (Illinois farm bureau) states that Colombia has grown tired of waiting for the U.S. to approve the FTA and they have entered into trade agreements with other South American countries and as a result our corn market has fallen from $600 million in 2008 to $200 million in 2009. Colombian Agriculture Ministry advisor Andres Espinosa told our group "you are losing market share fast and will lose almost everything if you don't approve the FTA." This proves that it makes a huge difference in our economy by implementing a FTA. Since the trade deficits are increasing more in number than the trade surpluses, the solution is to build more FTA’s. The U.S.-Bahrain Free Trade
Agreement has increased export opportunities for American business. Between
2005 and 2011, U.S. exports to Bahrain grew by 246% to
$1.21 billion while imports from Bahrain increased by 20% to $518 million. We can determine that economic growth results from more trade surpluses, which can be done by creating various FTA’s with other nations.

The widespread fear is that if we construct a FTA, the jobs will go overseas but the fact is that we don’t actually realize that the jobs are being created due to FTA’s. CEO of UPS expresses that Trade agreements actually allow American companies to export by breaking down barriers and eliminating unfair taxes and also A Professor Jagdish Bhagwati of Columbia
University speaking in this…