#TREATIES AND BLOCS QUIZLET FREE#

Very similar in its common goals to NAFTA, DR-CAFTA is seen by many as just another step in creating a completely globalized free trade agreement. DR-CAFTA, previously known as CAFTA, is the free trade agreement between Costa Rica, Guatemala, Honduras, El Salvador, Nicaragua, the United States and, most recently, the Dominican Republic, which put the agreement into effect in March of 2007. voters suggests that roughly 53 percent of Democrats do not approve of NAFTA, while in Canada, NAFTA has an approval rating of more than 62 percent.ĭR-CAFTA. Additionally, some say that government-issued subsidies given to those protected by NAFTA are an unfair monetary advantage against those who are not listed under NAFTA, especially those in the agricultural industries. Opponents suggest that energy taxes, especially those that caused billions in losses in 2006, are caused directly by NAFTA regulations that do not guard private citizen interest between nations well enough. NAFTA does have its controversies and opponents, but overall it is widely considered to be the most impressive free trade agreement to date. The combined effects on trade, labor, and environmental bylaws has created a colossal force in trade that determines when and how all Canadian, American, and Mexican goods and services will be dispersed amongst its most powerful consumers -each other. NAFTA, along with its two supplements, the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC), is the largest trade agreement on Earth today. In 2006, total trade reached a staggering $1.4 trillion. In 1967, ASEAN's overall trade was worth $10 billion. Southeast Asia has enjoyed unparalleled and astonishing economic growth in the past three decades since the establishment of ASEAN. Trading blocs include: North American Free Trade Agreement (NAFTA), Central American Free Trade Agreement (CAFTA), Association of Southeast Asian Nations (ASEAN), European Union (EU), Mercado Comun del Sur (Mercosur), and Southern African Development Community (SADC). Trading blocs are relationships between countries, generally in the same region, to facilitate free trade agreements. Benefits, reduction of tariffs, and other trading privileges applied to one country will be applied to all countries with the most favored nation status. The most favored nation status within a free trade agreement creates a situation where all countries are treated equally. MOST FAVORED NATIONĪn important component of free trade agreements is the most favored nation status. The notion of consensus facilitates cooperation and, potentially, an agreement that is most beneficial to all involved countries. At the center of the WTO is its multilateral trading system that functions by seeking consensus between all member nations (over 150). Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible. The WTO is the only international organization dealing with the global rules of trade between nations. The WTO became the official successor to the GATT. In 1995, during the Uruguay round of GATT negotiations, the World Trade Organization (WTO) was created. Despite numerous difficulties and differences between the involved countries, much was accomplished by GATT although portions were never fully ratified by all of the countries. The complete process is called “rounds ” There were eight rounds in the GATT treaty. The process of creating a free trade agreement followed a pattern of discussion, negotiation, and eventual ratification. In addition to creating a more liberal trade environment, it also had provisions and charters creating rules for employment, commodity agreements, restrictive business practices, international investments, and services. The General Agreement on Tariffs and Trade (GATT) was created shortly after World War II, between twenty-three countries, to facilitate and coordinate trade between the nations. HISTORYĪccording to the Congressional Budget Office, since the end of World War II there has been significant support, especially from the United States, to eliminate artificial trade barriers and to support a greater liberalization of international trade. Trading blocs are groups of countries that have reached a common agreement to lower trade barriers throughout the group (e.g., NAFTA, ASEAN, and the European Union). Free trade agreements are generally seen as having a positive impact on economic growth, especially for smaller countries in the agreement. Member countries belonging to the free-trade area trade freely with each other while maintaining trade barriers and tariffs for non-member countries. Free trade agreements are created to lower trade barriers and to stimulate trade between member countries. Sovereign nations join together, usually on a regional scale, to create free trade agreements.

Treaties and blocs quizlet