MANAGEMENT OF FREE TRADE AGREEMENTS

Management of Free Trade Agreements

Management of Free Trade Agreements

Introduction

The free trade agreement is signed up between poor and rich countries. These agreements are considered bad and devastating for underdeveloped countries. The policies of free trade agreement are debatable because of their unclear and questionable advantages for both the sides. On one hand, this debate is unable to try to limit the influences of free trade agreement to third world or emerging nations. On the other hand, it raises the argument that undeveloped countries as compared to their partners of trading will have to suffer because of expensive and unfair nature of agreement for free trade (Congress, 2010, pp. 8634-8640). In this paper we will study the influences of free trade agreement on developing countries. We will furthermore proof that the free trade agreement are harmful for poor countries and we will provide the reasons for poor countries to abandon these agreements.

Discussion

The proposition pleads for the poor countries to abandon free trade agreement as we believe that these agreements will harm the economies of these countries than any advantage. The free trade is neither acceptable nor a promising solution for the development of poor countries.

Free Trade Enslaving Underdeveloped or Third World Countries

The case of cotton packaging in Pama is the case of free trade agreement. Poor farmers of cotton in Western Africa have to come across new pressures of low commodity pricing and from the programs of privatization, which have been advocated by World Bank. Third world countries are compelled to have deep cut in tariffs. Most of the time, these tariffs are reduced to zero under these free trade agreements that are being signed by poor countries with rich states by force. This means that poor countries are compelled to open their markets to subsidized products of agriculture from European Union and similar places (Dresner, 2012, pp, n.d). There are more than two hundred fifty bilateral and regional agreements present already. Majority of the agreements are under negotiations. Bilateral and regional trade agreement have been governing more than 30% of the trade of whole world and twenty five third world countries have signed free trade agreement with rich countries.

According to the reports, two bilateral agreements for investment have been signed every week on average. Only poor countries are left out virtually. These agreements are the major cause for the undermining development of poor countries. In highly globalised world, these agreements are only beneficial for rich countries' exporters and organizations at the cost of poor workers and farmers of third world countries (George, 2006, pp. 148-155). The European Union and United States are forcing through rules on intellectual properties that minimize the access of poor people to life saving drugs. Furthermore, these rules increase the price of seeds and other inputs for farming have been turning beyond the reach of poor farmers. These agreements make it difficult for third world countries to have access to advanced technology.

At times, the governments show themselves ...