Free trade agreements' negative effects on U.S economic Assignment - 1

Free trade agreements' negative effects on U.S economic - Assignment Example This forms the need to write this report. NAFTA is an example of trading bloc in USA, which came into effect in January 1 1994. It is the largest trading bloc in the world and for this reason; we have used it as a basis of our argument. We have also used other trade deficits to back up our arguments. A free trade area is a form of integration in the countries represented. The countries enter to either a bilateral trade agreement or multilateral trade agreement. We shall define the meaning of the two different types of trade and give an example on each. USA has entered into a number of agreements with different countries for reasons such as: boosting trade, gaining a wider market for its finished and unfinished products among others. Trade barriers such as customs duty and tariffs have been removed facilitating free movement of goods and services in the countries (Davidson 1990). Agreements such as NAFTA agreement that was precendented by United States – Canada trade agreement has had both positive and negative effects in the growth of economy of the country. In the next pages we shall look both at the positive impacts of trade agreements made by USA and dwell more on the negative impacts of the trade. We shall use the NAFTA agreement as the basis of our arguments and othe r trade deficits to backup these arguments. Also illustrations will be used to show the situation in the ground. Business free trade agreements are treaties made between two people or countries to remove barriers of trade between them. These barriers may include tariffs and taxes. These free trade agreements between countries also allow people to move freely with minimum or no restrictions in member countries. The business free trade agreements help in liberalization of international movement of goods and services across countries. Countries that have business free trade agreements sign a