Still exists between only 2 countries US and Colombia free trade pact Trade

Still exists between only 2 countries us and colombia

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Still exists between only 2 countries – US and Colombia – free trade pact Trade imbalance/Positive trade balance/ Negative trade balance Buying more from a country than you make from selling to them – negative trade balance Selling more to a country than you are buying from them – positive trade balance o US and Japan – relationship has always been negative from US US buys cars, video games, anime, etc. but Japan doesn’t buy much from the US o China has positive with pretty much everyone in the world because they buy cheap stuff from other places and makes it into goods to sell to other states o Different products are better in other places than certain states Dumping – overproduce something, take the product and dump the product for half price in another country WTO – World Trade Organization A regulatory institution that makes sure that everyone is following trading rules 153 members out of about 193 countries o No illegal tariffs o No dumping Can complain or sue another country that you think is breaking the rules – can be punished monetarily for not following the rules o US sues the most people and has the most outstanding complaints with the WTO Grown exponentially in the last couple of decades o Steady march towards capitalism and free trade o Communism is almost gone and socialism is starting to deteriorate o The EU – international organization that was established for free trade Moving towards a United States of Europe Main global institute for trade NAFTA
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North America Free Trade Agreement Simple o Only 3 countries in it – US, Canada, Mexico o Only encouraging and facilitating trade – nothing else going on within it Signed into law in 1994 – one of the newer trade blocks on planet earth Slashed 50%-75% of the tariffs between the US and Mexico, pretty much no tariffs existed between the US and Canada Complicated features of the simple block o Different countries have different levels of development, environmental standards, levels of technology (make certain items for way cheaper), pay different wages (some have minimum wage, some have labor laws, some have no labor laws) o Richer countries can make high end goods and agricultural products cheaper than poorer countries because of the better technologies 10,000 farmers in Mexico cannot compare to 1 person in a tractor, and richer countries give out subsidies Q: What else needs to be negotiated/standardized between countries in a free trade area?
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  • Fall '08
  • International Trade, North American Free Trade Agreement, World Trade Organization

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