It has to be good news for everyone. When the recent free-trade agreement came into effect between America, Colombia, Panama and South Korea, it had to be welcomed by everyone in the east and west. Clearly this will encourage trade from east to west and vice versa. When there are no longer trade fees, it has to be a huge incentive to make additional purchases.
The organization Club for Growth would for sure welcome this news. This body works hard for less government intervention and more freedom for the people. Free trade is good for all the countries involved. Many other organizations such as the U.S. International Trade also see the benefit in this law as it will open many new doors for America and is likely to lead to a growth in the country’s exports by up to $10.9bn in the first year following the law’s implementation. Furthermore, the new trade law is expected to save a staggering 38,000 jobs in America, according to the country’s Chamber of Commerce.
There is the flip side of the coin though. And of course the law is coming under some sort of criticism. Others see that the disadvantages outweigh the benefits as American clothe-manufacturers are losing out to their Chinese counterparts who can get away with paying lower wagers. Still, ultimately it’s best for the consumer as prices are kept to a minimum. And if it happens to be China, then China will get the work and Americans will have to find other ways to compete if they want to stay in the game. Plus, in time China may increase their wages as well as Chinese shoppers become wealthier, which will bring the west back into a competitive mode.
No matter what disadvantages there are, this trade agreement is ultimately beneficial to both east and west markets and that is what all economic critics ultimately must realize. Even if it does come with some problems (what economic modern law doesn’t?) it still has too much to offer for it be fought against.