International trade — the essence of globalization — allows people, regions and nations to specialize in the production of what they do best, to enjoy economies of scale in production and …
The Trans-Pacific Partnership (TPP) offers an opportunity for the United States to increase trade with 11 other countries. Completing the agreement will create the largest free trade area, in terms of both goods and services, in which the United States participates.
After several failed attempts at regional integration, the countries of Chile, Colombia, Mexico and Peru formed the Pacific Alliance in 2011. The new coalition is focused on common economic objectives, including pursuing free market reforms and expanding trade with Asian markets.
India is one of the top global leaders in the generic pharmaceutical drug market. The third largest drug producer in the world, India is also the second largest exporter of generic drugs to the United States, behind only Canada. India’s success in pharmaceutical manufacturing prompted President Pratibha Patil to declare, in 2010, that the next 10 years will be India’s “decade of innovation.”
A free trade agreement commits two or more countries to reduce mutual trade barriers — tariffs, quotas and so forth. Such agreements give both countries' products an advantage in each other's markets relative to imports from other countries.
Prior to the 1980s, high import tariffs and quotas characterized Mexico's international trade policy, along with restrictions on foreign investment and ownership. But following a severe economic crisis in the early 1980s, the country began liberalizing its protectionist policies. In the years since, Mexico has implemented 11 free trade agreements — with the European Union, countries in South and Central America, Japan and, most importantly, the United States and Canada.
The U.S. embargo on Cuba was instituted in 1961 to overthrow Fidel Castro and neutralize the threat his regime posed by blocking all trade, except in food and medicine.
The $190 billion Farm Security and Rural Investment Act of 2002, passed by Congress and signed by President Bush, was a big mistake. While the Farm Act may serve farmers in the short run, it will harm them and many others over time.
Whether you're a steelworker or a waitress, a bus driver or an accountant, a large part of your earnings goes to the Social Security payroll tax every pay period. If you work for somebody else, part of the tax IS withheld from your paycheck, and your employer pays an equal amount on your behalf. If you work for yourself, you pay both parts.
One purpose of the GATT is to limit the power of U.S. politicians over the choices of American consumers. The agreement seeks to protect trade from exploitative politicians and heavy-handed bureaucrats. Since the GATT must be ratified by politicians, it will certainly be far from perfect. Yet the real question is whether people will have more or less freedom with the GATT. The answer is, they will have more.
The North American Free Trade Area (NAFTA) agreement would phase out all tariffs and most nontariff barriers between the United States, Mexico and Canada. The most surprising thing about NAFTA is that there is any controversy surrounding it. Both economic theory and centuries of empirical evidence support the conclusion that free trade means prosperity for all involved.