Free trade agreements are agreements between two or more countries that aim to reduce or eliminate trade barriers and facilitate the exchange of goods and services. These agreements can have a significant impact on international trade and the global economy. In this article, we will discuss three examples of free trade agreements.
1. North American Free Trade Agreement (NAFTA)
The North American Free Trade Agreement, or NAFTA, is an agreement between Canada, Mexico, and the United States. It was signed in 1994 and aimed to eliminate trade barriers between the three countries. NAFTA created a single market of over 450 million people with a combined GDP of over $20 trillion.
Since its implementation, NAFTA has had a significant impact on trade and investment between the three countries. It has facilitated an increase in trade, with exports growing from $291 billion in 1993 to over $1.3 trillion in 2015. It has also created jobs and improved the standard of living for people in all three countries.
2. European Union (EU) Free Trade Agreements
The European Union has signed free trade agreements with many countries around the world. These agreements aim to eliminate trade barriers and increase trade between the EU and its trading partners.
One example is the EU-South Korea Free Trade Agreement, which was signed in 2010. This agreement has led to an increase in trade between the EU and South Korea, with exports from the EU to South Korea increasing by 55% since its implementation.
Another example is the EU-Canada Comprehensive Economic and Trade Agreement (CETA), which was signed in 2016. This agreement aims to eliminate trade barriers and increase trade between the EU and Canada. It is expected to create jobs and increase economic growth in both regions.
3. Trans-Pacific Partnership (TPP)
The Trans-Pacific Partnership, or TPP, was a free trade agreement between 12 countries around the Pacific Rim, including the United States, Canada, Australia, Japan, and Singapore. It aimed to eliminate trade barriers and increase trade between the member countries.
The TPP was signed in 2016 but was never implemented, as the United States withdrew from the agreement in 2017. However, the remaining 11 countries signed a new agreement called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018. This agreement is similar to the TPP but does not include the United States.
Conclusion
Free trade agreements have become increasingly important in today`s global economy. They aim to eliminate trade barriers and increase trade between countries, which can lead to economic growth and job creation. The examples mentioned in this article – NAFTA, EU free trade agreements, and the TPP – are just a few of the many free trade agreements that exist today.
