Essay about Regional Free Trade Agreements

1013 Words Aug 17th, 2015 null Page
As all governments and nations work to remove trade barriers and create greater trading opportunities, the school of thought has been global trade liberalization and/or regional free trade agreements. While economists and politicians have argued on both sides of this issue, there has yet to be a consensus on the most optimal arrangements. This is a complex and multifaceted question which requires finesse and cooperation among nations and globally. Presented is an analysis of regional free trade agreements, benefits and drawbacks, and overall nations’ participation, and impact on global trading.
Regional Free Trade Agreements While global trade liberalization focuses on the reduction of tariff barriers between nations or all nations, regional free trade agreements are meant to bring together a small collection of regionally located nations (Carbaugh, 2015). This concept was based on the idea that these regionally based countries would receive preferential treatment from other members and ensure lower trading tariffs than those countries not in the agreement. At the same time, member countries were allowed to maintain their own domestic policies while trading with other nations in the regional basin agreement. The difference between trade liberation, as denoted by the World Trading Organization (WTO), and regional free trade agreements (FTA) is that FTA’s include only a small number of countries and these member discriminate against all outside nations (Carbaugh,…

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