Free+Trade


 * __Free Trade__ **

· Free trade is the system in which labor, and goods can freely flow between the nations without any barriers affecting the trades. · Allows more equality and stabilizes the countries finances.
 * __What is free trade?__**

__**What are dilemmas involved with free trade?**__ · The WTO Doha Development Trade Round had collapsed leaving the US for the blame around the world. · Many people had felt that free trade was a bad thing and thought it would result in an unequal trade favoring the wealthier partner. · Caused more arguments between the rich and the poor. -There was Washington DC protesting in 2000 and 2002 -There was also Seattle protesting in 1999

__**What are the arguments for free trade?**__ · Free Trade was originally designed to benefit everyone involved in the trades to create an economic growth. · Provide Americans with better job security · Will benefit America and also the world. · Raise the economy in America and other places around the world. · Help create equality around the world.

· Seattle and Washington DC. protest against the WTO and the IMF World Bank · (WTO) is the World Trade Organization and the primary supporter for free trade. WTO protested to Seattle and was about how people were being affected by having trade policies brought up in undemocratic ways all over the world. · (NAFTA) is the North America Free Trade Agreement between Canada, Mexico and US creating a trade bloc in North America. · (FTAA) is the Free Trade Area of the Americans · (IMF) is the International Monetary Fund or World Bank protested in Washington DC about developing countries.
 * __What groups formed to protest and also the treaties formed:__**

- WTO is the World Trade Organization and it creates the rules dealing with trade between different nations. - Through the WTO there are WTO agreements signed by a majority of the large trade nations. - WTO's primary goal is to help producers import and export goods in a successful way.
 * __What is WTO?__**



- NAFTA stands for North American Free Trade Agreement and is one of the most powerful treaties in the world. - Treaty is signed between Mexico, Canada, and America and was made to create greater trade between the 3. - Has been in process since January 1, 1994 - Fist thing NAFTA made sure to do was get rid of most tariffs to trade with the 3 countries. - Canada and Mexico did not want to pay the tariffs so most good were not sold in North America. - As a result Mexico began buying larger quantities of goods from US then ever before. - NAFTA also encouraged greater immigration between the different countries, - 2 branches of new agreements came of NAFTA into the NAAEC and NAALC. - NAAEC stood for North American Agreement for Economic Cooperation - NAALC stood for North American Agreement for Labor Cooperation. - The newest addition from this is the Security and Prosperity Partnership of North America
 * __What is NAFTA?__**

Go to Fair Trade Go back to Intro to Free Trade vs. Fair Trade



The graph above is an example of the amount of imports into America with our free trade system. It shows the amount of rice that has been imported from Haiti, produced locally, and the total production from 1985 to 2000. This is a good example of jobs being exported to other countries. This graph shows that the amount of rice imported to America has risen from about 10,000 metric tons to about 225,000 metric tons between 1985 and 2000 while the amount of locally made goods has decreased from about 175,000 to 125,000. The total production has also risen though from about 175,000 to 350,000. That is most likely because jobs can be outsourced in a free trade system. Since the jobs can be outsourced companies take advantage of the cheaper production cost and by from other countries. That causes the amount of imports to go up while the amount of locally made products goes down. This is an example of what happens when companies are able to have a free trade system. Overall production and import amounts can go up while the amount of locally produced goods can go down.