Reducing Barriers to Free Trade

INTRODUCTION Economists have long believed that free trade is essential for promoting the effective use of natural resources, employment, poverty reduction and diversification of consumer goods. However, the concept of free trade has many obstacles in the future. This includes public pressure to protect domestic enterprises from cheap foreign products and government practices in developed countries under corporate pressure. However, as History has shown over and over again, the protectionist measures imposed by the government will, in most cases, adversely affect the regional economy and the world economy.

The United States plays an important role in the international trade system and is often seen as a supporter of trade barriers and free trade agreements. The United States currently has more than a dozen free trade agreements. This includes the North American Free Trade Agreement (NAFTA) established between Canada and Mexico in 1994. The United States is also a member of the World Trade Organization (WTO). The United States has lost its competitive advantage over the past several decades, but still accounts for two-thirds of the total export value. The United States mainly exports high value-added capital goods and manufactured goods such as industrial machinery, aircraft, automobiles, chemicals and so on. In 2015, the US exported $ 1.501 billion of goods.

A free trade area is a region that includes trade groups whose members signed a free trade agreement (FTA). Such agreements include at least bilateral cooperation to reduce trade barriers - import quotas and tariffs - and increase trade in goods and services. In addition to the Free Trade Agreement, if people can move freely between the two countries, it will also be considered an open border. It can be said that the world's most important free trade area is the European Union (EU), which is a political economic alliance consisting of 28 member countries, centered on Europe. The EU pioneered a single European market through a standard legal system applicable to all Member States. The EU policy is aimed at securing free flow of people, goods, services, and capital in the domestic market.

Trade liberalization Free trade policies such as the North American Free Trade Agreement (NAFTA) aims to integrate regional markets or world markets by reducing trade barriers between countries. Signatory States generally agree to abolish tariffs such as tariffs and surcharges, and to eliminate non-tariff trade barriers such as export licensing requirements, import quotas and subsidies to domestic producers. Privatization of Public Assets Globalization of economies is characterized by selling state-owned enterprises, products and services to individual investors from the perspective of expanding markets and improving efficiency. These assets include banks, major industries, highways and railways, electricity and electricity, education and medical care. Privatization usually involves the sale of public and economically available natural resources such as water, minerals, forests, land to private investors.