Free Trade Agreement Between Pakistan And Sri Lanka Case Analysis

Since Australia’s first free trade agreement (FTA) with New Zealand in 1983, Bilateral and Multilateral FTA’s have been a great advantage and focus in securing economic prosperity for Australia. Australia’s two-way trade in goods and services was A$616 bn in 2012. Australia has seven FTAs currently in force with New Zealand, Singapore, Thailand, US, Chile, ASEAN (with New Zealand) and Malaysia. Together, these countries account for 28% of Australia’s total trade, which displays the great benefit of bilateral FTAs to the Australian economy. Additionally, there are four bilateral FTA negotiations currently in place, two of which are substantial trading partners; China, being Australia’s largest export market (A$78.7 bn) and Japan, being Australia’s second largest export market (A$49.8 bn). The Japanese Free Trade Agreement has been negotiated, and will be a great benefit to the Australian economy, especially the agricultural sector, for example tariffs on beef

Trade is an important transfer that is vital to the abundance of a country. International trade allows countries to exchange their goods and can improve their economies. Many businesses within the United States dislike international imports because they reduce their business within the U.S. Some people believe business can be improved within the United States by imposing tariffs on imports. Tariffs are taxes on imported goods from other countries. Others who favor international trade believe it’s beneficial to establish trade agreements. One trade agreement is NAFTA, the North American Free Trade Agreement, which President George H.W. Bush signed on December 8th, 1993. The treaty included the countries Canada, Mexico, and the United States, and intertwined all of their economies. It eliminated most of the tariffs between the three countries and installed a supply chain, which is a network where different countries make specific parts of a product. Recently, President Trump has proposed that NAFTA be abolished, to promote products manufactured in the United States. This recent situation relates to the issue of the tariffs at the Philadelphia Convention. At the time of the convention, the Northern states’ economy was based on manufacturing, so they wanted to impose tariffs to promote American products. The South’s economy was agricultural based, and exported many goods to Great Britain. So Southerners feared that if tariffs were imposed on Britain’s goods, then Britain would do the same on products from the South, which would negatively affect the South’s economy. Trade can be very beneficial to a country, but states can have different opinions on whether tariffs are necessary, depending

Trading is very important economic factor. Trade between different countries depends upon different factors. There are some factors due to which bilateral trade between two states is enhanced. On contrary, there are some factors which restrict or reduce the trade between two countries (Meyer, 2011). Factors which enhance trade include different cultural, political, geographic and economic aspects which are common between the 2 countries involved in bilateral trade with each other. While trade is reduced or restricted, if two countries are completely different culturally, politically, geographically and economically (Siegel, 2011). For example, trade between two countries, having common boarder, currency, per capita income et cetera, will be lot more high than those countries which do not share these factors common with each

These export trade agreements, in the next two decades, will create thousands of available jobs, and also boost the GDP by approximately $25 billion, which benefits consumers, households and economic growth. There are several strategies under the new trade agreement that targets partnership and bring benefits:

The population of the Asia region of the world contributes a massive amount of exporting goods, and global business as a whole. The sheer number of people consuming goods that must be imported to support the large population force the need for trade with other regions. The demand for resources is high and the need to develop strong trade relations with other countries is vital to the continued growth and success of Asian countries.

Since 1993, China has experienced uninterrupted trade supplies and in 2013, China has overtaken the US as the world’s largest trading nation. As an economy highly integrated into the global trade system, the country benefited from a steady improvement in its term of trade since 2000. The country has multiple bilateral and multilateral trade agreements that opened new markets for its product. A Free Trade Agreement (FTA) between China and ASEAN nations which came into effect in the beginning of 2010, created the world’s third largest free trade area in terms of nominal GDP. China established FTA with nations like Korea, Peru, Pakistan, Singapore and etc.

The North American Free Trade Agreement, or N.A.F.T.A, was established to improve the economy of the United States, Mexico, and Canada. It has been close to twenty-three years since the treaty was officially signed; time has given us insight into the effects that this agreement has produced.

Free trade agreements are in force all over the world today. A free trade agreement is an “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” (www.naftanow.org, 2013). These agreements are essential for the countries if they want to trade goods and services with each other without having to be bothered with each other’s laws and regulations.

It is commonly believed that free trade between nations is a mutually beneficial arrangement for all parties involved; indeed, this is held to be an absolute truth. Though free trade is undoubtedly the most effective form of commerce between countries from a purely economic standpoint, increasingly we find that our so-called "free trade agreements" are horribly unbalanced. Indicative of these fiascoes is the North American

Since the mid-20th century, countries have progressively reduced barriers, subsidies to domestic industries and diverse restrictions on international commerce in order to promote specialization and greater efficiency in production. In theory, free trade allows nations to focus on their main comparative advantages and profit from cooperation and voluntary trade. This strategy is usually reinforced by treaties between two or more countries where commerce of goods and services can be handled across their common borders, without tariffs and other trade obstacles. As a key component of regional integration in the Americas, CAFTA-DR is one important example of this economic ideology.

Being the world 's largest economy, the United States is also largest exporter and importer of goods and services. American economic growth relies heavily on trade. According to a recent report on NAFTA, “Since 1992, nearly 20 million new jobs have been created in the U.S., in part due to the 1994 NAFTA agreement. Total trade between the NAFTA partners -- the U.S., Canada, and Mexico -- rose from $293 billion in 1993 to more than $475 billion in 1997, and has increased since. ” (Bowman, Free Trade). It is obvious evidence that international trade is beneficial to the US economy, at least in the 1990s.

Free trade areas, FTA, are economic integration arrangements in which barriers to trade (e.g. tariffs), exchange of goods and information among member nations are removed. It is arguable to say that fair trade aims to create equilibrium between LEDC's, less economically developed countries and developed nations in terms of trading activities and ethics. In saying this, free trading between more economically developed countries and LEDC's will mean

In 1994, the leaders of the thirty-four democratic countries of the Western Hemisphere launched the process of creating a Free Trade Area of the Americas (FTAA). The FTAA will be established by 2010 with the aim of gradually eradicating barriers to trade and investment in the region. The final characteristics of the FTAA will be determined through negotiations by government officials from the thirty-four participating countries. The trade issues that are presently under discussion are: market access; investment; services; government procurement; dispute settlement; agriculture; intellectual property; antidumping, subsidies and countervailing duties; and competition policy. Guiding principles for these negotiations

Globalization has become one of the most influential forces in the twentieth century. International integration of world views, products, trade and ideas has caused a variety of states to blur the lines of their borders and be open to an international perspective. The merger of the Europeans Union, the ASEAN group in the Pacific and NAFTA in North America is reflective of the notion of globalized trade. The North American Free Trade Agreement was the largest free trade zone in the world at its conception and set an example for the future of liberalized trade. The North American Free Trade Agreement is coming into it's twentieth anniversary on January 1st, 2014. 1 NAFTA not only sought to enhance the trade of goods and services across

The numerous trade agreements developed between different groups of countries reveal the success of developing such relationships. Countries these trade agreements have reported increased imports and