Free Trade In Australia

Many countries in the world are apart of free trade areas that have free trade agreements with other countries. What a free trade area? According to the World Book definition, a free trade area is, “an area in a country where goods can be imported without paying custom duties (import taxes). Foreign traders may store, exhibit, assemble, or process products in these zones before shipping them elsewhere for sale or use” (“World Book” 500). These free trade areas can differ from an entire city or territory where no customs duties are collected. Free trade areas are created to encourage the act of foreign trade by allowing countries to trade their goods in a more cheaply way than making the good in their home nation. Free trade can have positive
The United States- Australia Free Trade Agreement, which was established on January 1, 2005, affected both the United States economy and Australia’s economy as well. Before the free trade agreement was put into action, the Australian tariffs were ten times the United States tariffs. The free trade agreement immediately saved the United States money from the tariffs. The agreement instantaneously gave U.S. manufacturing workers and companies benefits supporting over one-hundred and fifty thousand Americans’ jobs. The free trade deal also added the attractiveness to Australia as an investment destination (“Benefits of free trade agreements”). Another free trade agreement the United States has completed is, the United States-Bahrain Free Trade Agreement. This free trade agreement was established on January 11, 2006. It did not only create jobs for U.S. farmers and workers, but it also helped the economy of Bahrain by enhancing the commercial relations with an economic leader in the Arabian Gulf (“Bahrain Free Trade Agreement”). A commonly known free trade agreement is the North American Free Trade Agreement, or also called NAFTA. This free trade agreement is between Mexico, Canada, and the United States. With the new president, Donald Trump, attention has been brought to NAFTA. Trump plans on negotiating a better deal or getting rid of the free trade agreement as a whole. The North American Free Trade Agreement
Countries who do not want these free trade agreements use some type of protection. With the possibility of world affairs, many people state that a country does not need to fully rely on foreign countries to supply their goods too heavily. Also, free trade is very harmful to the local businesses. Many countries decide not to do free trade so they can support their local and small businesses and employees in their nation. An example of this is when NAFTA came into work. In Bremen, GA the Sewell Suit Factories all went out of business because they no longer could make business with anyone. All the jobs and work went to a much bigger