Starting with the Theodore Roosevelt government, the United States has become an important player in international trade, particularly with its neighboring territories in the Caribbean and Latin America. Today, the United States has become a leader in the free trade movement and supports groups such as the General Agreement on Tariffs and Trade (later the World Trade Organization). [Citation required] South Korea The Free Trade Agreement (KORUS-FTA) came into force on 15 March 2012. Korea is the sixth largest trading partner of the United States with a value of approximately $84.3 billion in 2016. U.S. exports to Korea were estimated at $30.7 billion, while Korean imports totalled $53.5 billion this year. USTR South Korea FTA Page” All said, the United States currently has 14 trade agreements with 20 different countries. On the other hand, some local industries benefit. They are finding new markets for their duty-free products. These industries are growing and employing more labour. These compromises are the subject of endless debate among economists. Jordan Since the implementation of the U.S.-Jordan Free Trade Agreement in December 2001, two-way trade between the United States and Jordan has increased by more than 350%, from $568 million in 2001 to more than $2 billion in 2016. USTR U.S.-Jordan FTA Page” These agreements between three or more countries are the most difficult to negotiate.
The larger the number of participants, the more difficult the negotiations. They are, by nature, more complex than bilateral agreements, insofar as each country has its own needs and requirements. The United States has 14 free trade agreements with 20 countries and is currently negotiating regional free trade agreements with several other countries. How can U.S. companies determine tariffs on exports to FTA partner countries? Free trade agreements or free trade agreements have many advantages and can sometimes be complex to understand. Find out what a free trade agreement is. Which countries have agreements with which the United States has agreements? How can your business benefit? What is the impact of free trade agreements on my company`s imports and/or exports? Israel The free trade agreement between the United States and Israel, our country`s first free trade agreement, came into force on September 1, 1985. Since the free trade agreement came into force, trade in two-lane goods with Israel has increased five-fold, from $4.7 billion in 1985 to more than $27 billion in 2016. USTR U.S.-Israel FTA Page” A free trade agreement is an agreement between two or more countries whereby countries agree on certain obligations affecting trade in goods and services as well as the protection of investors and intellectual property rights.
For the United States, the primary objective of trade agreements is to remove barriers to U.S. exports, protect U.S. interests abroad, and improve the rule of law in partner countries or countries of the free trade agreement. Removing trade barriers and creating a more stable and transparent business and investment environment make things easier and less costly for the United States.