Free trade has many different properties that make it both good and bad. I believe that the positives aspects of free trade outweigh the negative, but the negatives are still significant. Having a free trade agreement with another country can cause a loss of income to local businesses, but it allows businesses to step up their work ethic and improve products and production. This can benefit the unemployed because business owners need to hire more workers. A major negative to this is that sometimes businesses in other countries do not have fair employment standards. This is the opposite of North America where there laws to help protect the citizens.
Free trade is when a minimum of two separate countries sign an agreement that allows them to trade without any tariffs or import taxes. This allows the country to have a good relationship with their partner countries. A great example of two countries that have a free trade agreement is Canada and the United States. They have what is called North American Free Trade Agreement (NAFTA). NAFTA was established on January 1st, 1994. The agreement follows the rules of the World Trade Organization (WTO). Before the WTO was established there was the General Agreement on Tariffs and Trade (GATT). The GATT was established in 1948 during a United Nations meeting. They ended up replacing it with the WTO in 1994 but it fully commenced on January 1, 1995. The WTO liberalizes and watches trading around the globe to make sure that they are following the laws.
On June 7, 2007 Canada, Iceland, Liechtenstein, Norway and Switzerland came together and signed the bilateral European Free Trade Association (EFTA) agreement. This agreement manly focused on tariff elimination between these countries.
A large negative in doing free trade with other countries is that it is harder to have efficient quality control on products. This can be due to the fact that other countries may not have the same...