Since after World War II the General Agreement on Tariffs and Trade (GATT), what was later to become the World Trade Organization (WTO), has influenced many governments around the world to put their economies in what they would say is the “best” position possible. What is the WTO promoting as a policy you ask? Free Trade , and the supposed riches that come along with it.
The WTO has been pushing nations to open their doors to free trade to allow for consumers everywhere to have access to goods they may never had access to before. Many argue that this race to reach international consumers has created competition, efficiency and productivity and will create a better world economy.
Over the course the last few months the free trade movement has continued. Recently, Shanghai has decided to open their market by creating a free trade zone. (Read exactly what has happened here.) A few months back the European Union and the United States signed a blockbuster deal, a free trade agreement like no other (Watch the first video below).
Watch the videos:
1) Why do you think both the U.S. and the E.U. signed these agreements? If it is thought there will be both winners and losers prior to the agreement what explanations could there be?
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