Benefits of the US- Chile Free Trade Agreement
The meeting of minds between Chile and the United States has brought about a long awaited union pertaining to free trade. Chile responded enthusiastically when presented with the opportunity to become a part of 1994's North American Free Trade Agreement (NAFTA) but because of the issue of presidential fast-track trade negotiation authority, the merger did not come to fruition. Now, nearly a decade later -- after negotiations began in the year 2000 -- Chile and America have come to their own agreement with regard to free trade, one that is both historic and comprehensive in nature.
On September 3, 2003, President George W. Bush signed the United States - Chile Free Trade Agreement (FTA). Which went into effect on January 1, 2004. Chile was the first country in Latin America to sign this type of agreement with the United States. The United States - Chile Free Trade Agreement allows two nations to strengthen and develop economic relations and to establish free trade between them.
The Government of the United States of America and the Government of the Republic of Chile, resolve to:
(a) Strengthen the special bonds of friendship and cooperation between their nations
(b) Contribute to the harmonious development and expansion of world trade and provide catalyst to broader international cooperation.
(c) Create an expanded and secure market for the goods and services produced in their territories.
(d) Avoid distortions in their reciprocal trade.
(e) Establish clear and mutually advantageous rules governing their trade.
(f) Ensure a predictable commercial framework for business planning and investment.
(g) Build on their respective rights and obligations under the Marrakesh Agreement establishing the World Trade Organization and other multilateral and bilateral instruments of cooperation.
(h) Enhance the competitiveness of their firms in global markets.
(i) Foster creativity and innovation, promote trade in goods and services that are the subject of intellectual property rights.
(j) Create new employment opportunities and improve working conditions and living standards in the respected territories.
(k) Build on their respective international commitments and strengthen their cooperation on labor matters.
(l) Protect and enhance and enforce basic workers’ rights.
(m) Implement this agreement in a matter consistent with environmental protection and conservation.
(n) Promote sustainable development.
(o) Conserve protect and improve the environment, including through managing natural resources in their respective territories and through multilateral environmental agreements to which they are both parties.
(p) Preserve their flexibility to safeguard the public welfare; and
(q) Contribute to hemispheric integration and the fulfillment of the objectives of the Free Trade Area of the Americas (http://www.
Trade is the most common form of transferring ownership of a product. The concepts are very simple, I give you something (a good or service) and you give me something (a good or service) in return, everyone is happy. However, trade is not limited to two individuals. There are trades that happen outside national borders and we refer to that as international trading. Before a country does international trading, they do research to understand the opportunity costs and marginal costs of their production versus another countries production. Doing this we can increase profit, decrease costs and improve overall trade efficiency. Currently, there are negotiations going on between 11 countries about making a trade agreement called the Trans-Pacific
"North American Free Trade Agreement (NAFTA)." Encyclopædia Britannica. Encyclopædia Britannica Online. Encyclopædia Britannica Inc., 2011. Web. 23 Nov. 2011. .
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CT Publishing Company, Redding Calif. 1996. North American Free Trade Agreement. Vol.1, US Government Printing Office, 192-330-817/70635, 1995.
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