Free Trade, the ILO and the Economic Bloc
International Labour Organization (ILO) is a UN agency established in 1919. The ILO is internationally recognized for its promoting of human labour rights and social justice. The ILO has survived the true test of time, stemming back to the Treaty of Versailles which is the only action of the treaty to survive today. The ILO has over 200 economic integration agreements active in the world today and most of them relatively new which involve almost every nation in one to many trade agreements. Members in favor of free trade in the ILO insist that “free trade is good for the nations (ILO, 2014).”
The basis of ILO members support is that free trade is good for all nations. There is a difference in opinions as to the effectiveness of labour provisions in the trade agreements. Labour provisions can be found in trade agreements. Labour provisions are what effect the terms and conditions of labor law itself. Labour previsions in free trade agreements can be different adding to the complexity. Trade agreements by the United States and Canada is contributing to a movement for labour standards. Free trade is good for the nations, through trade agreements it brings growth to the economy and labour provisions to protect the nation’s workers and working to a standardization of labour laws (ILO IIFLS, 2014).
The specific benefits sought by joining an economic bloc are reduced tariffs and limited tariffs. It also removes the investment and trade barriers within the bloc. The members of the bloc are represented now as a group. The members have a say in the world’s economic and political stages. As a trade bloc it also widens the range of goods and services that are available. Money and goods now mov...
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...o members in the bloc but has numerous key Free Trade Agreements from around the world. The ASEAN Economic Community is posed and well positioned for solid economic growth through the free markets. This is supported by the amount of money flowing into the region from the United States. Europe and elsewhere. The free trade market place is looking and routing for ASEAN Economic Community’s success. It is seen as the catalyst that will energize the free trade market and will be good for the United States, Europe, and beyond. There has been many studies done supporting this theory and many countries are convinced as seen by them supporting this by their investments in ASEAN Economic Community. Free Trade has been good for all nations and opens the doors to the world’s economy, promotes social, political and labor improvements making the world as a whole a better place.
The European Union has been helped economically ever since World War II. Right after World War II’s end, Europe was struggling to hold on. The countries of the modern-day European Union thought it would be a good idea to come together and help each others struggling economy. To this day, this decision has had a very positive outcome on the EU’s economy. As shown in Diagram 1, the European Union combined together has the world’s highest GDP at 18.3 Trillion USD as compared to the United States’ 17.4 Trillion USD GDP and China’s 10.4 Trillion USD GDP. The idea
”Examine the extent to which the benefits of UK membership in the European Union outweigh the costs” Economic integration is the joining of economic policies between different states/regions. This eliminates tariff and non-tariff barriers to the flow of goods, services and factors of production between the regions. Economic integration has varying levels referred to as trading blocs; these are a form economic integration. A trading bloc is a group of nations that have been made a bilateral or multilateral agreement. There are four types of trading blocs.
Free trade comes with its share of pros and cons. It is responsible for increased economic growth, better business environments, encourages investment
The United States free trade agenda includes policies that seek to eliminate all restrictions and quotas on trade. The advantages of free trade can be seen through domestic markets and the growth of the world economy. T...
These “Inner Six” nations thus laid the framework for further integration of other nations within the region and its supranational principles were what led to the creation of the European Economic Community in 1957, further assimilating the European countries’ economies. The creations of these communities for economic purposes were meant to promote cooperation amongst European nations to prevent the further outbreak of violence which had subsided with the end of WWII. Through these general agreements of economic importance came further integration through the creation of more agreements throughout the 1960s, such as the abolishment of customs duties amongst their borders, creating free trade and border trade tax pacts among the Inner Six and across their borders to other signatory nations.
Globalization has become one of the most influential forces in the twentieth century. International integration of world views, products, trade and ideas has caused a variety of states to blur the lines of their borders and be open to an international perspective. The merger of the Europeans Union, the ASEAN group in the Pacific and NAFTA in North America is reflective of the notion of globalized trade. The North American Free Trade Agreement was the largest free trade zone in the world at its conception and set an example for the future of liberalized trade. The North American Free Trade Agreement is coming into it's twentieth anniversary on January 1st, 2014. 1 NAFTA not only sought to enhance the trade of goods and services across the borders of Canada, US and Mexico but it fostered shared interest in investment, transportation, communication, border relations, as well as environmental and labour issues. The North American Free Trade Agreement was groundbreaking because it included Mexico in the arrangement.2 Mexico was a much poorer, culturally different and protective country in comparison to the likes of Canada and the United States. Many members of the U.S Congress were against the agreement because they did not want to enter into an agreement with a country that had an authoritarian regime, human rights violations and a flawed electoral system.3 Both Canadians and Americans alike, feared that Mexico's lower wages and lax human rights laws would generate massive job losses in their respected economies. Issues of sovereignty came into play throughout discussions of the North American Free Trade Agreement in Canada. Many found issue with the fact that bureaucrats and politicians from alien countries would be making deci...
Conclusion: The purpose of trade blocs is well-defined: they are made to increase the wealth and standard of living for the citizens of the member nations and to make sure goods and services are available in a hassle free manner. NAFTA and EU both are one of the most powerful alliances in the world, but NAFTA will never be able to compete with the EU, main reason being lack in antiquity, location and developed countries.
Lastly, the comparative advantage of a country in ASEAN is being treated as a cheap trading product instead of being taken as an advantage for the country if they were to stand alone. Citizens in the country will have more choices in the domestic markets due to the low imported tariffs imposed and will have a great impact on their product which have comparative advantage.
Free trade is a form of economic policy which allows countries to import and export goods among each other with no government interference. In recent years there has been a general consensus in economist’s stance on free trade. They view free trade as an asset. Free trade allows for an abundance of goods with increased varieties and increased availability. The products become cheaper for consumers and no one company monopolizes an industry. The system of free trade has been highly controversial. While free trade benefits consumers it has the potential to hurt manufacturers and businesses thus creating a debate between supporters of free trade and those with antagonistic positions.
In order for international trade to work well, governments must allow the world market to determine how goods are sold, manufactured and traded for all to economically prosper. While all nations may have the capability to produce any goods or services needed by their population, it is not possible for all nations to have a comparative advantage for producing a good due to natural resources of the country or other available resources needed to produce a good or service. The example of trading among states comprising the United States is an example of how free trade works best without the interve...
Free trade in today’s economy allows so much more than just jobs and goods at lower prices for Americans. Compared to the foreign competition, the free trade benefits outweigh any risks the foreign competition might impose on the US. As said by Denise Froning in her article, free trade benefits in four ways. “Free trade promotes innovation and competition, Free trade generates economic growth, Free trade disseminates democratic values, and Free trade fosters economic freedom.” Societies that enact free trade policies create their own economic enthusiasm, nurturing freedom, job opportunities, and success that benefit every citizen. Free trade is the only type of fair trade because it offers consumers the most choices and best standards to improving their type of living. Also by fostering opportunitie...
Free trade can be defined as the free access of the market by individuals without any restriction or any trade barriers that can obstruct the trade process such as taxes, tariffs and import quotas. Free trade in its own way unites and brings people together. Most individuals love the concept of free trade because it gives them the ability to move freely and interact in the market. The whole idea of free trade is that it lowers the price for goods and services by promoting competition. Domestic producers will no longer be able to rely on government law and other forms of assistance, including quotas which essentially force citizens to buy from them. The producers will have to enter the market and strive into to obtain profit.
Even though APEC has some problems their accomplishments outweigh them. APEC is still working towards its goal of free and open trade with working groups and committees. Working groups inquire about local cooperation with specific topics. APEC is particularly important in making the region focus on issues of trade and opening the global market.
Much of the political case for regional economic integration stems from national security. Another case study provided by Hill is the European Union. The nation states of Western Europe bonded together in an effort to deal with the political giants of the USSR to the east and the USA to the west. Further, regional economic integration can facilitate political harmony between nations due to their increased level of
Trade creation occurs when low cost producers within free trade area replace high cost domestic producers. These agreements create more opportunities for countries to trade with one another by removing the trade barriers and investment. Trade creation allows member countries for a wider selection of goods and services not previously available. They can acquire goods and services at a lower cost after trade barriers due to lowered tariffs or removal of tariffs which will encourage more trade between member countries the balance of money spend from cheaper goods and services, can be used to buy more products and services. Regional economic integration significantly contributes to the relatively high growth rates in the nation. By removing trade barriers between members countries the factor of production can be move