Acronyms
FTA
Free Trade Agreement
Who had the first FTA with the US?
Israel
What is an FTA?
agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics
NAFTA
North America and Canada
What is the year that US first entered FTA?
1985
EFTA
European Free Trade Association
How many countries does the US have FTA's with?
20
What is one benefit of FTA's?
Reduction or elimination of tariffs on qualified products
Availability of quality goods at affordable prices- Free trade agreement eliminates any taxes, thus helps the companies to sell their products at affordable prices.
Promotion of better relations- Free trade agreement promotes better relation between the countries, which can transform into a long-term friendship.
World market reachability- Free trade agreement imparts freedom to companies to freely sell their products across the borders of the partnered country, thus ensuring wide market reachability for countries in a free trade agreement.
Name two countries that are in the EFTA
Norway, Iceland, Switzerland and Liechtenstein
United States-Mexico-Canada Agreement (USMCA)
2020
BIT
Bilateral Investment Treaties
When was FTA first defined by GATT?
1994
What is on disadvantage of FTA's?
Low quality of products- Free trade agreement might encourage the company to sell low-quality products at a high price.
Reduces co competition- Free trade agreement might force domestic companies to shut their businesses due to inability to stand the competition with foreign goods, available at less price.
Discourage domestic manufacturers- Free trade agreements might discourage domestic businesses to shut their businesses due to the inability to meet the competition created by foreign goods.
Promotion of dumping which involves dumping of defective goods into another Nation.
An effect on the job market of a country because the clause of these agreements may allow the other Nation's free flow of labor.
FTA’s like North American free trade agreement- has benefited the country to certain extent but it has affected the job market in a very negative way.
Name three countries that are in CAFTA-DR
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Dominican Republic
Dominican Republic-Central America (CAFTA-DR) Agreement
2005
COMESA
Common Market for Eastern and Southern Africa
What is the largest and oldest U.S. trade preference program?
Generalized System of Preferences
What are two elements of Comprehensive Economic Partnership Agreements?
Agreements that are more comprehensive than FTAs
Looks into the regulatory aspect of trade and encompasses and agreement covering the regulatory issues
Covers negotiations on the trade in services and investment and other areas of economic partnership
Sometimes considers negotiation on areas such as trade facilitation and customs cooperation, competition, and intellectual property rights
Name three countries from the Trans Pacific Partnership.
Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States (until 23 January 2017) and Vietnam.
In what year was the most recent bilateral investment agreement settled?
2021
ASEAN
Association of Southeast Asian Nations
What are two protections that Bilateral Investment Treaties provide to foreign investors?
Fair and equitable treatment (often meaning national treatment or most favored nation treatment)
Protection from expropriation
Free transfer of means and full protection and security
How many countries do GSPs aim to promote economic development in?
119
Which countries were part of the Mercosur Agreement?
Argentina, Brazil, Paraguay, and Uruguay
When is the Regional Comprehensive Economic Partnership supposed to become effective by?
2022