Trade Agreements Flashcards
3 things a trade agreement must address
- encourage foriegn trade
- decrease tariffs and trade barriers
- promote trading internationally
Explain the 2 main events that occurred at the Bretton Woods Conference:
In 1944 at the Bretton Woods Conference, the foundations for international trade agreements were
established to contribute to globalization, The World Bank and the International Monetary Fund (IMF).
Bilateral Trade Agreement
- consists of 2 countries
- goods and commodities are exchanged
Multilateral
- involves 3 or more countries
- goods and commodities are bought and sold in terms of value
NAFTA
North American Free Trade Agreement
What is NAFTA meant to promote?
NAFTA was implemented in order to promote trade between the USA, Canada, and Mexico.
Advantages of NAFTA
- reduces trade barriers
- eliminates tariffs on imports and exports
- increased economic growth
- Better prices for consumers
Disadvantages of NAFTA
- USA job loss
- increased job outsourcing
- degradation of natural resources
- no custom regulations
FTAA
Free Trade Area of the Americans
doesn’t exist
What did the FTAA propose?
It proposed a “free-trade zone encompassing all of the Americas… North America and South America and of the Caribbean with the exception of Cuba.
It doesn’t exist because of environmental and labour laws.
EU
European Union
Purpose of the EU?
The EU purpose was to stop war within European countries, by promoting peace, offering freedom, security, and justice.
Criteria to join the EU?
The criteria for joining the EU is that a candidate country has achieved stability of institutions guaranteeing democracy.
Some countries in the EU?
Ireland, Italy, Spain, Portugal, Romania, France, etc.
What do all EU countries share?
EU members share a customs union; a single market in which capital, goods, services, and people move freely; a common trade policy; and a common agricultural policy.
