The main criticism of free trade agreements is that they are responsible for outsourcing employment. There are seven drawbacks in total: the United States currently has a number of free trade agreements in place. These include multi-nation agreements such as the North American Free Trade Agreement (NAFTA), which includes the United States, Canada and Mexico, and the Central American Free Trade Agreement (CAFTA), which includes most Central American nations. There are also separate trade agreements with nations, from Australia to Peru. It also results in a temporary or permanent contraction of the least productive U.S. companies and industries. This is a common concern of opponents of free trade agreements. However, according to the CBO, ”economic theory and historical evidence suggest that the long-term and diffuse benefits of international trade outweigh the concentrated short-term costs. This conclusion has always been strongly supported by the economic sector. Environmental protection measures can prevent the destruction of natural resources and crops. Labour laws prevent poor working conditions. The World Trade Organization imposes rules on free trade agreements. The United States currently has 14 free trade agreements with the following 20 countries: I think we are well beyond the question of whether globalization is a good thing or not.
Globalization is already under way. We are in the process of determining who will define the rules of globalization and what those rules will be. The continued participation of the United States in free trade agreements and support for free trade agreements will not only help businesses of all sizes, but will also contribute to the protection of workers` rights and the environment in Member States. But the biggest agreement, NAFTA, has had a bigger impact. A CBO report estimated that NAFTA accounted for 34% of U.S. trade growth with Canada and Mexico in the first seven years of the agreement. In total, over the same period, NAFTA accounted for 7% of total U.S. trade growth. Together, these agreements mean that about half of all goods entering the United States enter duty-free, according to the government. The average import duty on industrial products is 2%.
Some suggest that the impact of free trade agreements was too small to play a role; I disagree. It is true that the impact of many trade agreements has been small. This is because many agreements have been concluded between the United States and countries with much smaller economies and because tariffs and other trade barriers were generally low when the agreements came into force. The benefits of free trade agreements are real, but importers and exporters often never recognize them because they are trapped in their regular daily activities, which deal with limited time, limited resources and, frankly, limited knowledge related to hundreds of free trade agreements.