Why Should We Have Free Trade Agreements

A free trade agreement is a pact between two or more countries aimed at eliminating import and export barriers between them. Under a free trade policy, goods and services can be bought and sold across international borders without customs duties, quotas, subsidies or government bans hindering their trade. Free trade increases the prosperity of Americans – and citizens of all participating countries – by allowing consumers to buy more and better products at a lower cost. It promotes economic growth, increased efficiency, increased innovation and the greater fairness that accompanies a rules-based system. These benefits increase with the increase in overall trade – exports and imports. Reality: It is the overall level of trade – exports and imports – that most accurately reflects American prosperity. Prosperity is defined by the magnitude and diversity of what Americans can consume. Companies export their products and services to trading partner markets. .

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