Globalization ends up creating an intertwined and interdependent network of stakeholders across the borders. Others like Greece suffered from the alliance. Regardless of which side one might take, the question is who are the many here and who are the few? Who gets let out and who stands to gain?įormation of European Economic Area saw many winners (I am talking about you Germany) among the member countries whose cultures and monetary policies were already aligned with the idea. The “needs of the many outweigh the needs of the few” is the typical stance that people who support such agreements take. One side supports the trade agreements and the benefits it brings to the community in terms of revenue and employment, while others complain of unemployment. Trade Agreements always spark controversy and divide the society. The Needs of the many outweigh the Needs of the few Finally, US gets access to cheap oil in Mexico and Canada. By sharing some wealth with Mexico and improving their standard of living, the criminal influx from Mexico into the US would also reduce. More than that, second, NAFTA is a geopolitical strategy by the US to secure its neighborhood by forming strong alliances with the neighboring countries on both the fronts. However, there are many theories about the formation of this treaty.įirst and foremost is the mutual benefits and improving the wealth, which is a given.
#THE NEEDS OF THE MANY OUTWEIGH THE NEEDS OF THE FEW BIBLE FREE#
It has shown that how free trade agreements could lay the foundations for strong economic growth and prosperity for the member states. The North American Free Trade Agreement (NAFTA) came into effect in 1994, creating one of the world’s largest free trade zones and was signed between Canada, United States, and Mexico. It is truly every globalists dream! A borderless world! NAFTA, European Economic Area, and Mercosur are three such examples and huge markets in the world.
Free trade agreement essentially merges markets under different jurisdiction, different monetary and fiscal policy into one large super market space. In such cases, the government imposes tariffs and regulatory barriers on these imported goods to protect the domestic industry.įree trade agreements eliminate such tariffs and barriers, allow fair competition and cross border movement of goods and services and increase investment opportunities (North American Free Trade Agreement, ). In an open market world, the local industries and their products must compete not only with the local competitors but also with the international ones who constantly try to penetrate the market. However, what does the free trade even mean? In my mind, trade agreement benefits only one party while free trade benefits all the parties involved. Adding the word “free” in front of it does not ease the uncomfortableness either. It could also be because I am an Indian and British East India company used the same technique to colonize India. Whenever someone says “Trade” or “Trade agreement,” what comes to my mind is the massive trade Federation vessels from Star Wars and how it was used to invade the planets in the republic. To understand the complexity of the issue, let us start with what is free trade. For me, it is essentially the age-old struggle of ideologies -between Globalization and Regionalism, between Collectivism and Individualism. However, such a discussion is not isolated, but a global phenomenon. NAFTA has always been a hot topic in Americans elections since inception.
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