U.S. Trade with Free Trade Agreement (FTA) Partners

This report presents data on U.S. merchandise (goods) trade with its Free Trade Agreement (FTA) partner countries. The data are presented to show bilateral trade balances for individual FTA partners and groups of countries representing such major agreements as the North America Free Trade Agreement (NAFTA) and the Central American Free Trade Agreement and Dominican Republic (CAFTA-DR) relative to total U.S. trade balances. This report also discusses the issues involved in using bilateral merchandise trade balances as a standard for measuring the economic effects of a particular FTA

The Proposed U.S.-Colombia Free Trade Agreement

[Excerpt] The proposed U.S.-Colombia Trade Promotion Agreement, also called the U.S.-Colombia Free Trade Agreement (CFTA), was signed by the United States and Colombia on November 22, 2006. The agreement must be approved by Congress before it can enter into force. Upon congressional approval, it would immediately eliminate duties on 80% of U.S. exports of consumer and industrial products to Colombia. An additional 7% of U.S. exports would receive duty-free treatment within five years of implementation, and most remaining tariffs would be eliminated within 10 years of implementation. The agreement also contains other provisions in services, investment, intellectual property rights protection, labor, and the environment. About 90% of U.S. imports from Colombia enter the United States duty-free under trade preference programs or through normal trade relations, while U.S. exports to Colombia face duties of up to 20%. It is possible that the 112th may consider implementing legislation for the proposed CFTA. Negotiations for the agreement were conducted under the trade promotion authority (TPA), also called fast-track trade authority, that Congress granted the President under the Bipartisan Trade Promotion Act of 2002 (P.L. 107-210). The authority allowed the President to enter into trade agreements that would receive expedited congressional consideration (no amendments and limited debate). Implementing legislation for the CFTA (H.R. 5724/S. 2830) was introduced in the 110th Congress on April 8, 2008, under TPA. The House leadership, however, took the position that the President had submitted the implementing legislation without adequately fulfilling the TPA requirement for consultation with Congress. On April 10, 2008, the House voted 224-195 to make the provisions establishing expedited procedures, inapplicable to the CFTA implementing legislation (H.Res. 1092). In his January 2011 State of the Union address, President Barack Obama mentioned the importance of opening foreign markets for U.S. goods and services, and strengthening U.S. trade relations with Colombia. In 2010, the Administration initiated a new National Export Initiative (NEI), which includes a component that calls for opening new markets for U.S. exports by resolving outstanding issues on the pending CFTA. The Obama Administration also has made a case for pursuing free trade agreements as part of the National Security Strategy of the United States, though the CFTA is not specifically mentioned in the report. The congressional debate surrounding the agreement has mostly centered on the violence issues in Colombia. Some members of Congress oppose the agreement because of concerns about violence against union members and other terrorist activity in Colombia. However, numerous members of Congress support the CFTA and take issue with these charges, stating that Colombia has made progress in recent years to curb the violence in the country. They also contend that the agreement would open the Colombian market for U.S. exporters. Other policymakers argue that Colombia is a crucial ally of the United States in Latin America and that if the trade agreement is not passed, it may lead to further violence in the region. For Colombia, a free trade agreement with the United States is part of its overall economic development strategy. The United States is Colombia’s leading trade partner. Colombia accounts for a very small percentage of U.S. trade (0.8% in 2009), ranking 22nd among U.S. export markets and 27th as a source of U.S. imports. Economic studies on the impact of a U.S.-Colombia free trade agreement (FTA) have found that, upon full implementation of an agreement, the impact on the United States would be positive but very small due to the small size of the Colombian economy when compared to that of the United States (about 1.6%)

Challenges and opportunities of the China – Gulf Cooperation Council Free Trade Agreement

The free trade agreement between China and the Gulf Cooperation Council (“the GCC”) currently under negotiation is due to become China’s first comprehensive trade and investment agreement with a supranational customs union. The article explores the challenges and opportunities of the proposed China-GCC Free Trade Agreement. It proposes tailor-made recommendations according to the specific interests of both parties

Free trade with Mexico?

Free trade ; International trade ; North American Free Trade Agreement ; Mexico

The North American Free Trade Agreement (NAFTA)

[Excerpt] The North American Free Trade Agreement (NAFTA) has been in effect since January 1, 1994. NAFTA was signed by President George H. W. Bush on December 17, 1992, and approved by Congress on November 20, 1993. The NAFTA Implementation Act was signed into law by President William J. Clinton on December 8, 1993 (P.L. 103-182). NAFTA continues to be of interest to Congress because of the importance of Canada and Mexico as trading partners, and because of the implications NAFTA has for U.S. trade policy under the Administration of President Donald J. Trump. During his election campaign, President Trump stated his desire to renegotiate NAFTA and that he would examine the ramifications of withdrawing from the agreement once he entered into office. He has also raised the possibility of imposing tariffs or a border tax on products from Mexico. This report provides an overview of North American market-opening provisions prior to NAFTA, provisions of the agreement, economic effects, and policy considerations

Challenges and Opportunities for Trade and Financial Integration in Asia and the Pacific

During the past two decades, intraregional trade has assumed a lot of importance - with intraregional trade growing rapidly in several regions, such as the Association of Southeast Asian Nations (ASEAN), North American Free Trade Agreement (NAFTA) and the European Union. However, intraregional trade in South Asia has not witnessed rapid expansion despite the institutional measures taken by the South Asian countries through the South Asian Preferential Trade Agreement (SAPTA) and the South Asian Free Trade Agreement (SAFTA).intraregional trade, South Asia, ASEAN, NAFTA, SAFTA, SAPTA

NAFTA at Ten: Lessons from Recent Studies

This report provides an analytical summary of the economic lessons reached in support of Congress's role in the trade policy process. On January 1, 2004, the North American Free Trade Agreement (NAFTA) completed its tenth year and most of its provisions are now implemented. NAFTA is a free trade agreement (FTA) that effectively added Mexico to the U.S.-Canada FTA completed in 1989. Its anniversary has sparked numerous evaluations, which are particularly relevant as the United States pursues free trade agreements with multiple Latin American countries. Most studies found that NAFTA's effects on the U.S. and Mexican economies to be modest at most

Now is NOT the Time for the Columbia FTA

[Excerpt] The U.S.-Colombia free trade agreement is the wrong trade model at the wrong time. Instead of helping workers here or in Colombia, the U.S.-Colombia free trade agreement would reward a country with a history of extreme violence that has utterly failed to protect workers\u27 rights. This agreement, negotiated by the Bush Administration before the financial meltdown of 2008 and the current unemployment crisis, contains too many flawed trade policies of the past. Instead of wasting valuable time and effort advancing this inadequate agreement, President Obama should instead focus on effective job creation measures (including currency rebalancing, infrastructure investment, and robust training and education) and reforming our trade model (so that it strengthens labor rights protections for all workers, safeguards domestic laws and regulations, and promotes the export of goods rather than jobs)

EU-India free trade agreement : a quantitative assessment

This report analyses the effects of a regional trade agreement (FTA) between the EU and India, for which negotiations are underway. The study starts with abrief overview of the key insights from the existing literature on FTAs and their relationship with multilateral negotiations. The remainder of the study is devoted to analysing the impact of tariff slashes under an FTA on merchandise trade between the EU and India. Of particular interest are the implications for agricultural markets, given the tension between agricultural liberalisation and India's policy goals relating to self-sufficiency in food grains and poverty reduction. The analysis employs GTAP, a global general equilibrium model using a recent database which has 2004 as its reference year. The results suggest that India's interests in a regional trade agreement with the EU are downplayed by the fact that India's economy is not well integrated in global markets. Impacts on the EU are minor and further reduced if a Doha agreement is in place when the FTA is implemented. Results indicate the rationale for a strongly asymmetric arrangement: it would be in the interest of both partners if the EU provides large concessions to India for market access, while India maintains the bulk of current border protection. An EU - India FTA delivers little scope for achieving efficiency gains via adjustments to the pattern of international specialisation. An EU - India agreement on merchandise trade is unlikely to embody substantial preferential treatment with regard to market access. Probably, India can find more suitable FTA partners. Agriculture is a key sector for India in the consideration of equity and growth purposes of a FTA with EU

On the future erosion of the North American Free Trade Agreement

Free trade ; North American Free Trade Agreement