In general, the evidence indicates that FTAs have benefited the American economy. They have contributed to lower prices for American consumers and have boosted growth and employment. Better policies ought to be implemented by political parties in order for these benefits to continue. Due to different views on trade agreements, this is still uncertain. As a result of trade negotiations and open trading agreements, member nations have seen economic, political, and production growth. By examining the overall effects of FTAs with the United States, this study contributes to the existing body of research on the topic. The United States of America and its allies have demonstrated economic and political expansion, as well as an increase in imports and commodities. The impact on a smaller business in the economy and the formation of a group of opponents are key outcomes here. We have observed that, in the grand scheme of things, free trade regulations benefit the majority of businesses, and smaller businesses can pivot or expand to maintain market relevance. Trade agreements are a crucial tool for nations seeking to promote prosperity and economic growth. To balance the interests of all parties, they must be properly developed.
By its participation in organizations such as the World Trade Organization and the North American Free Trade Agreement, the United States has been a pioneer in advocating free trade. It will be essential for nations to keep cooperating to develop trade policies that are advantageous to all parties as the global economy develops. Dealing with issues related to environmental and labor standards is one of the major difficulties in FTA negotiations. FTAs have the potential to enhance economy, but there is also a chance that they may lead to worsening labor conditions and environmental deterioration. To address these issues, there has been an increasing focus on including labor and environmental measures in recent years. For instance, the United States-Mexico-Canada Agreement (USMCA) has clauses that protect the environment and the rights of workers by, among other things, mandating Mexico to tighten its labor laws and undertake pollution control measures. By addressing social and environmental issues, these clauses can ensure that FTAs encourage sustainable and equitable growth.
FTAs have emerged as a popular mechanism for enhancing economic growth and fostering closer political ties between countries. While some of these agreements primarily focus on boosting trade and the economy, others are aimed at improving diplomatic relations between nations. Future research on this topic should examine the impact of such agreements both before and after their implementation, taking into account political changes that could affect their success. It is important to assess which industries stand to benefit the most from these agreements, to identify potential areas of growth and expansion. For example, the United States has recently shown an increased interest in executing trade agreements with smaller nations. Such agreements hold promise for the future of economic growth and closer political ties within the United States and its partners. However, the success of these agreements is often contingent upon the prevailing government’s political stance, making it imperative to consider the broader political context when evaluating their impact. To fully understand the effects of these agreements on economic growth and diplomatic relations, more research is necessary to assess their effectiveness in different regions and industries. Policymakers can use these insights to make informed decisions and ensure that free trade agreements promote sustainable economic growth and foster closer political ties between nations.
Naim Islam is a professional science master’s student, pursuing engineering management under the Department of Industrial and Manufacturing Engineering at Minnesota State University, Mankato.
Pawan Bhandari, Ph.D. is an Assistant Professor in the Department of Manufacturing Engineering Technology at Minnesota State University, Mankato, USA.
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