Free Trade defined:


"When two countries agree to eliminate all tariffs and taxes on goods and services traded between them."
Free Trade benefits both of these countries because they are able to sell their goods and services in the
other country with outh taxes. This creates new job oppurtunites, uses up new resources, and reduces
consumer costs.

Free Trade:
  • is the trade of goods and services without taxes and tariffs or other trade barriers
  • provides free access to markets
  • provides free access to market information
  • provides free movement of labour between countries
  • provides free movement of capital between countries

The WTO

WTO2.jpg











The World Trade Organization was created
in 1995 to increase international trade by lowering
trade barriers and making trade more predictable.
The WTO monitors and ensures that trade agreements
aremet, they settle trade disputes and conducts trade
negotiations.


There are many opinions of Free Trade.
Many speakers say that Free Trade is mostly for the Rich and provides no positive impact for the poor
and those who cannot afford it. Free Trade increases privitization and creates monopolies.
Here is a video better explaining the negative impacts of Free Trade:


Examples:

NAFTA- North American Free Trade Agreement (1994)
- Members are Canada, Mexico and the United States
- Eliminated the majority of tariffs
NAFTA.jpg
GATT- General Agreement on Tariffs and Trade (1950's)
- Main objective was the reduction of barriers to international trade
- Divided into three phases
- Involves 23 countries

CAFTA- Central American Free Trade Agreement (2006)
- Free Trade agreement legally a treaty under international law not US law
- Involves the Dominican Republic
Cafta.jpg