The United States has eleven active and 3 pending free trade agreements.
Free trade is something of an oxymoron in that regulations exist to foster deregulation. The United States has a number of free trade agreements with nations such as Israel, Australia, Morocco, and Singapore. By regulating the terms of trade deregulation, free trade agreements are designed to create optimal trade environments wherein competition leads to improved labor and environmental conditions, as well as more sound business practices.
North American Free Trade Agreement
The North American Free Trade Agreement, or NAFTA, regulates free trade between Canada, Mexico, and the United States. In effect since 1994, NAFTA consist of bi-lateral trade agreements between the United States and Mexico, the United States and Canada, and Canada and Mexico. The primary aim of NAFTA was to eliminate tariffs on goods and barriers preventing international trade between the three nations so that commerce and investment might take place more uninhibitedly throughout the continent. The scope of NAFTA regulations is enormous; they apply to everything from telecommunications to intellectual property rights. In agriculture, nearly all tariffs and barriers have been removed. Between Canada and Mexico, only eggs, dairy, poultry, and sugar still carry tariffs.
Dominican Republic-Central American-United States Free Trade Agreement
The purpose of the Dominican Republic-Central America-United States Free Trade Agreement is to regulate and facilitate free trade between the nations covered by the agreement’s title, other than Panama, which is the subject of its own, pending free trade agreement. One of the primary purposes of the CAFTA-DR regulations is to promote growth and international partnerships in developing nation economies. By promoting free trade, the regulations of CAFTA-DR were designed to encourage competition, which in turn will encourage transparency in business and government decisions, and promote fair business and government practices.
Korea-United States Free Trade Agreement
Though drafted in 2007, the Korea-US Free Trade Agreement has yet to become a reality as of 2010. However, President Obama has indicated the intent to finalize the agreement. If these steps are taken, the regulations of KORUS would eliminate tariffs on 95 percent of bilateral trade between the nations within three years. Regulations are in place to insure that the remaining tariffs would fade over a 10-year period. The increase in trade resultant of these regulations is projected to increase the Gross National Product of the United States by $10 to $12 billion annually.
