Who Made Free Trade Agreement
16 octobre 2021
Research suggests that economists at U.S. universities are seven times more likely to support free trade policies than the general public. In fact, the American economist Milton Friedman said, « The business profession was almost unanimous about the desirability of free trade. » Many small U.S. businesses relied on exporting their products to Canada or Mexico under NAFTA. According to the U.S. Trade Representative, this trade has supported more than 140,000 small and medium-sized businesses in the United States.  The United States had a trade surplus with NAFTA countries of $28.3 billion for services in 2009 and a trade deficit of $94.6 billion (annual increase of 36.4%) for goods in 2010. This trade deficit accounted for 26.8% of the total U.S. trade deficit in goods.  A 2018 study on global trade published by the Center for International Relations identified irregularities in the trade models of the NAFTA ecosystem using theoretical network analysis techniques. The study showed that the US trade balance was affected by opportunities for tax evasion in Ireland.
 According to Chad P. Bown (senior researcher at the Peterson Institute for International Economics), « a renegotiated NAFTA that restores barriers to trade is unlikely to help workers who have lost their jobs, regardless of the cause, take advantage of new employment opportunities. »  The political divide was particularly broad with respect to views on free trade with Mexico. Contrary to a favorable view of free trade with Canada, which 79 percent of Americans called a fair trading partner, only 47 percent of Americans believed Mexico was doing fair trade. The gap between Democrats and Republicans has widened: 60 percent of Democrats thought Mexico was fair trade, compared to only 28 percent of Republicans. That was the highest score of Democrats and the lowest score of Republicans ever recorded by the Chicago Council Survey. The Republicans had a more negative view of Canada as a fair trading partner than the Democrats.  In the modern world, free trade policy is often implemented through formal and mutual agreements between the nations concerned. However, a free trade policy may simply be the absence of trade restrictions.
Economists generally agreed that the U.S. economy as a whole benefited from NAFTA as it increased trade.   In a 2012 survey conducted by the Global Markets Initiative`s Economic Expert Panel, 95% of respondents said that, on average, the United States. .