In the following paragraphs, we will describe (a) the different types of free trade agreements that are in force today, (b) explain why some provisions need to be introduced and why others in a U.S.U.K. it is necessary to avoid. FTA, c) a summary of the types of reforms that would result from an ideal free trade agreement and, finally, a rough rapprochement with the actual language of this ideal free trade agreement. In terms of security, each U.S. trade agreement contains a total security exception. Such an exception would be appropriate for a future trade agreement, such as. B a free trade agreement between the United States and Vietnam, and could improve the prospects for ratification. For a U.U.K. However, national security concerns are less widespread and a narrowing of the exception may be desirable. Studies by economists at the World Bank and elsewhere have shown that border delays are significant barriers to trade. The purpose of the rules is to ensure that customs procedures facilitate and do not impede trade by maximizing predictability, consistency and transparency in border clearance rules. The provisions are intended to reduce transaction costs by removing administrative barriers to trade. In addition, the opacity of customs processing and customs clearance procedures creates greater leeway for corruption, which also increases costs and reduces the benefits of trade.
Many rules in different countries aim to achieve the same objectives as consumer safety, worker safety or respect for the environment. Sometimes the different requirements – for example. B a minimum length of the electrical cable of a washing machine of one meter compared to three feet – result in no apparent difference in the results (the frequency of fires or electrocutions), but they increase business costs. Under these conditions (and there are many other examples), it may be possible to allow companies to meet only one of the two standards. In addition to these free market requirements, the ideal free trade agreement must include rules on e-commerce. Digital commerce – data flows, which are essential components of the provision of goods and services in the 21st century – must remain untaxed and protected from abuse and abuse. Rules prohibiting governments from imposing location requirements or certain data architectures that reduce the efficiency of digital services should be introduced and companies should be forced to ensure data protection, which meets the requirement that the data flow be as smooth as possible. The recent U.S. trade agreement – the Trans-Pacific Partnership (TPP) – contained rules of origin that were generally more liberal than previous U.S. trade agreements. While the average threshold for content origination in previous U.S.
agreements was about 35 percent, the threshold in the TPP was about 30 percent. In the past, free trade agreements have not focused on “free trade” per se. These agreements are better referred to as managed trade agreements because they tend to liberalize, distract and impede trade and investment flows. While some parts of these agreements significantly reduce barriers, other provisions seek to isolate established businesses and the status quo from dynamic and competitive forces.