Arrest Trade Barriers by Free Trade Agreements

Arrest trade barriers by free trade agreementsethical way of doing business. Foreign traders should
following international standardsnot have a problem with this because just the same,
Trade barriers are artificial disincentive to export orthey would want other traders to respect their
import traders. Example of trade barriers are tariff,intellectual property rights if ever.
quota and unnecessary import/export licenseFree trade eliminates the possibility of bribery,
requirements slapped against foreign traders to favorcorruption and imposing undue payoffs. This is
local traders.because this practice of cashing in on foreign traders
Traders who suffer from these trade barriers aremay result to a barrier that prevents foreign traders
imposed additional costs that raises their trade prices,to compete fairly and squarely in the marketplace.
thus, it will be hard for them to compete fairly onShould this happen, consumers will suffer because
pricing issues.traders will get back at them on issues such as
Once these foreign traders experience lossespricing and quality of service.
because it will loose good amount of customer dueRemoval of trade barriers except for reasons of
to high cost, moving out from the trade favors localnational security and health is the main purpose of
traders and suppliers.free trade agreements such as the North American
Economists believe that trade barriers decreaseFree Trade Agreement (NAFTA), European Free
overall economic efficiency.Trade Agreement, European Union and South
This practice deprives local consumers of the goodsAmerican Community Nation.
from other nations because the governmentThese agreements ensure foreign traders some
safeguards local traders. This may be good becauseleeway on trade barriers; if not at all eradicate it. The
there is a fair chance for local players to get better,United Nations International Standards plays a big role
however healthy trading including foreign goods andin ensuring protection of traders and industries.
services might be better.For certain industries, however, such as agriculture
To arrest issues against trade barriers imposed onand steel, even those countries that promote free
foreign traders, the United Nations set up standardstrade extend heavy subsidy to local players. This is a
and procedure promoting free trade.safeguard of the government for the growth of
Free trade promotes the recognition of the importantthese industries in their country.
contribution of international standards and conformityThis issue on subsidy may still be tolerable than other
assessment, which can affect efficiency oftrade barriers that burden and costs foreign trader,
production and facilitation of international tradeespecially corruption.
conduct.Finally, nations should avoid repeated use of trade
Removing trade barriers, otherwise known as freebarriers against each other to avoid trade wars that
trade encourages conformity to internationalwill not benefit anybody in the end. Free trade
standards that may lead to open trading betweenpromotes economic efficiency, thus nations should
nations.recognize open trading to benefit from globalization.
Even with the advent of free trade, respect ofFree trade allows consumers to enjoy goods from
trader's intellectual property rights may still need toother nations, which commonly they will not be able
accord due respect. This does not necessarily favorto have access on should trade barriers continue to
one against the other. But to respect the rights andprejudice foreign traders hoping to enter the country.
privileges of the intellectual proprietor. This is an