Trade Theories T-Tip Free Trade Agreement

Question:-

Choose T-TIP free trade agreement and describe which other countries have signed on and why the U.S. Senate should ratify or not ratify the agreement.

Answer:-

Trans-Atlantic Trade and Investment partnership or T-TIP Free Trade agreement has both pros and cons. The pros include a minimum of 0.5% increase in gross domestic product in partner countries. It relaxes the rules and therefore, eases the business operations, removes geographical barriers and establishes common business standards among the partner countries with increase in trade opportunities (Burnson, 2016). However, the cons of this agreement are too many. Since there is no control on tariff, the profit of many countries would be affected and the agreement gives the right to sue other governments when profits are hurt. Also, there is no transparency in inter-country deals due to relaxed regulations where full-disclosure is not mandatory. Heavy unemployment is also another con. Therefore, the US senate should not ratify this agreement.

Regional trading groups act as a support to the World Trade Center’s multilateral trading system. However, agreements by such groups also affect the trade interests of some countries leading to the violation of World Trade Center’s principles. Mexico, EU and EFTA have already signed the agreement (Ozarowski, 2017).