The main criticism of free trade agreements is that they are responsible for outsourcing employment. There are seven drawbacks: free trade agreements are treaties that regulate tariffs, taxes and tariffs imposed by countries on their imports and exports. The most well-known regional trade agreement in the United States is the North American Free Trade Agreement. It is customary for ATRs to contain elements that have nothing to do with trade and which, in fact, can be used to limit trade rather than promote long-term trade. RTAs, particularly many people who relate to the United States, often contain parameters on labour standards, environmental issues; Intellectual property rights and capital movements. Trade agreements open many doors. With access to new markets, competition intensifies. Increasing competition is forcing companies to produce better quality products. It also leads to greater diversity for consumers. If there are a variety of high quality products, companies can improve customer satisfaction. This situation is particularly dangerous when there is a dominant trading partner in the bloc that can shift its weight for political gains.

In addition, the preferential agreement can protect industries and hinder inefficiencies within the bloc. Given that the pace of multilateral talks is generally slow (the Uruguay Round lasted seven years), which requires in-depth negotiations; In the meantime, countries that prefer multilateral trade liberalization are fighting for regionalization. The fundamental premise of a regional trade agreement (RTA) is to facilitate trade and strengthen economic integration between states. Representatives of the regions concerned negotiate conditions through several stages, until all parties are satisfied. These conditions generally involve the removal or total removal of trade barriers that can hinder trade, such as tariffs and quotas. Once a regional trade agreement is ratified, the signatory states would pave the way for an increase in the movement of goods, services, people and capital between them. The pros and cons of free trade agreements affect employment, business growth and living standards: regional trade agreements vary according to commitment and agreement between Member States. In addition, the negotiation process is costly, particularly for small countries, and, given the “cost of non-participation” in the RTA`s efforts, focuses on rapid regional agreements. Given the pressure of regionalization and the limitation of negotiating means, countries can quickly build trading blocs.

Written by shivamsood

I am a social activist and social worker based out of New Delhi. I fight for the basic civic rights of citizens such as water, electricity, hygiene, education, public health & safety. My mission is and always has been to get all citizens their basic civic & human rights. My fight is not against one individual or government but is against any institution, person or entity that denies citizens their rights.