The state of Americas economy is due primarily to free trade throughout the world, but is free trade truly helping America and its citizens, or has it given opposing countries the upper hand? (Free Trade Area)

Authors Avatar

        

        Free Trade in America

        Since the mid-nineteen-hundreds, America’s economy has been based on the idea of free trade. Free trade takes place when two or more countries come together to agree on disposing of trade barriers and tariffs. Once the barriers and tariffs are gone, the countries are more likely to be encouraged to trade with one another, and this supposedly helps the partners economically by providing new markets to trade within. Although this concept seems perfectly logical, the argument over free trade is a never ending battle within United States. The state of America’s economy is due primarily to free trade throughout the world, but is free trade truly helping America and its citizens, or has it given opposing countries the upper hand? (“Free Trade Area”)

        The North American Free Trade Agreement, or NAFTA, was established in 1993 and officially put into effect during 1994. It eliminated all trade barriers between the United States, Mexico, and Canada on January 1, 1994 (“Timeline: World”). Many thought that this document would provide more employment within America and overall raise the living standards of all countries taking part, but others thought differently. In their, minds it was be a poor decision that would give away the United States’ job opportunities to other countries whose citizens would work for lower wages (“Fast-Track”). Americans are known for their values and working hard to earn every penny that they have, and this agreement was not in support of their protectionism. In American citizens’ minds, it takes away their dignity (“Protectionism”).

        Protectionism is something that is not found too often in America today. It is the frame of mind that a country should not be completely reliant on other areas for items of everyday need. Recently, in February 2009, the United States’ government funded a $700 billion stimulus package. The idea of this was that it would create jobs while improving the way Americans live. For example, roads and bridges would be built and repaired. All items such as steel and iron used in the projects, with few exceptions, would also be created in the United States. Advocates approved of this plan because of the recession taking place. It gave them a chance to get back on their feet; however, critics claimed that it was a waste of money. Even though it did create employment, it was quite expensive, and it could create a “trade war” by depriving other countries of their work opportunities. This would not be good for American society due to the fact that the United States hardly sales its own products within itself, and what few it does are extremely expensive (“Protectionism”).

Join now!

        The Free Trade Area of the Americas, FTAA, is taking the place of NAFTA. Parts of the government have decided that free trade should be expanded beyond Canada, America, and Mexico. Currently the FTAA includes all countries in the western hemisphere, excluding Cuba. Cuba was excluded because of its communist ways. The whole idea of FTAA does not go over well with many because of its contribution to NAFTA, and people believe that because NAFTA was such a failure in helping America, that expanding its boundaries would only worsen the issue (“Free Trade Area”).

                The Central American Free Trade Agreement ...

This is a preview of the whole essay