Free Trade Agreements Trading Bloc

Multilateral and free trade agreements create benefits by increasing the import and export of goods. Countries are not equal in their production capacity. Access to raw materials, the level of technological development required and the training of the workforce have an impact on the development of a product or service. Free trade agreements allow countries to focus on what they do best, while being able to buy goods and services at the lowest possible price. Free trade allows countries rich in certain natural resources (such as oil) to trade with the world at a fair price and at the same time import goods traded from other countries that are scarce in their own countries, such as products.B. By opening doors for other countries to compete fairly and without tariffs and trade policy, he is convinced that enhanced free trade is a deterrent to monopolistic activities. Some proponents of global free trade oppose trade blocs. Trade blocs are seen by them to promote regional free trade at the expense of global free trade. [4] Those who work there argue that global free trade is in the interest of each country, as it would create more opportunities to transform local resources into goods and services currently demanded by consumers. [5] However, scientists and economists continue to discuss whether regional trading blocs are fragmenting the global economy or promoting the expansion of the existing global multilateral trading system.

[6] [7] DR-CAFTA. Dr.-CAFTA, formerly known as CAFTA, is the free trade agreement between Costa Rica, Guatemala, Honduras, El Salvador, Nicaragua, the United States and, more recently, the Dominican Republic, which implemented the agreement in March 2007. Dr. CAFTA, which is very similar in its common NAFTA objectives, is seen by many as an additional step in the development of a fully globalized free trade agreement. Dr.-CAFTA represents the future of free trade and the development of smaller free trade zones to larger areas, with the ultimate goal of involving almost every nation. In the 1970s, many former British colonies formed their own trading blocs in response to the UK`s accession to the European Common Market.