Free Trade Agreement (FTA)

FTA

The trade is one of important part of economy. We cannot imagine without trade on economy. When we started trade we might have lots of problems among the countries, so we need to have duties and regulations for the problems. Fro the solve problem we established organizations and agreements.

The all over the world the each country joined one or more the trade organizations. One biggest organization is WTO (World Trade Organization). The 136 countries joined to WTO right now. The principle of WTO is Most-Favoured-Nation Treatment: Treating other people equally under the WTO agreements. Countries cannot normally discriminate between their trading partners, Grant someone a special favour and you have to do the same for all other WTO members. But some exceptions are allowed; the representative of example is the FTA.

What is FTA?

The FTA is abbreviation of Free Trade Agreement; this agreement will remove most barriers to trade and investment among the countries. We also called the FTA to the Regional Trade Agreement, because usually the FTA contracted among the close regional countries: for example, EU and NAFTA.

The special feature on the FTA is that among the members remove trade barriers and tariff, bur for the nonmembers, they apply different tariff to each countries.

The beginning of the trade agreement was about the tariff negotiation for the goods, but the latest of the trade agreement trends are extension to a service, an investment, a labor and etc.

The FTA started in 1950; the beginning countries were Western Europe and USA. After in 1950 the FTA coexists with GATT (General Agreement on Tariff and Trade) and in crease gradually, but after WTO Established, the FTA became diffusion to al...

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...h bigger or stronger countries. The FTA defiantly gives more opportunities developing countries, but some country can get hurt through this.

The all over the world the FTA contract increase every year, recently the 7countries of South Asia signed on FTA included the India. We guessed the India is going to be one of future economy powers.

The every world economy goes to regionalism and every country try to get some partners. If the most countries have FTA with other countries then the country didn’t have FTA might get problem. The most economists think we need more FTA between countries then I think we need more protection for the small weak countries

Reference

http://www.wto.com

http://www.fas.usda.gov/itp/plicy/nafta

http://new .empas.com/show.tsb/

http://www.maf.go.kr/asp/06_obersea/

http://www.agriculture.pe.kr/data/107.htm