free trade agreements

by abifox
Last updated 6 years ago

Discipline:
Social Studies
Subject:
Economics
Grade:
9

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free trade agreements

Why are they used?

When were they put in place?

What are they?

Who is useing them?

free trade agreements

A free trade agreement is a bond between two or more countries related to international trade. Tariffs (taxes) to trade over country boarders are discarded or dramatically decreased to allow the trade of goods and services to run freely between the countries.

The tariffs that were enforced when trading between countries made it quite difficult for any country to advance its economy. Free trade agreements were enacted to make it cheaper and easier for trade to happen between countries. No tariffs make it a lot more attractive for countries to trade with each other and buy each other’s goods.

Free trade agreements can be imposed between any two countries however some free trade agreements have gotten as big as 28 countries such as the European Union (EU). Australia has one with china as well as South Korea and Japan.

Some of the latest new free trade agreements to be signed were the North American Free Trade Agreement (NAFTA) between the United States and Mexico and the Australia – United States Free Trade Agreement (AUSFTA). These were signed in 1992 and 2004.


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