A free trade area has several advantages, including: Customs UnionA customs union is an agreement between two or more neighbouring countries to reduce trade barriers, reduce or eliminate tariffs and remove quotas. These unions have been defined in the General Agreement on Tariffs and Trade (GATT) and are the third stage of economic integration. It also allows the free movement of imports within the zone and among its members. For example, goods from a third country imported by a member of a customs union may also be imported duty-free into other EU countries. The main criticism of free trade agreements is that they are responsible for outsourcing employment. There are seven total drawbacks: others agree that the environment is a new victim of free trade. Simply put, you can`t have free trade and “save the planet,” says Alf Hornborg, a professor of human ecology at Lund University in Sweden, noting that free trade aims to remove unfair barriers to world trade and stimulate the economies of developed and developing countries. But free trade can – and has – have many negative effects, especially deplorable working conditions, job losses, economic damage to some countries and environmental damage around the world. Nevertheless, the World Trade Organization continues to work for free and unfettered trade, to the detriment of certain economies and millions of workers. Free trade agreements are treaties that regulate the tariffs, taxes and tariffs that countries collect for their imports and exports. The most well-known regional trade agreement in the United States is the North American Free Trade Agreement. As underdeveloped countries try to reduce costs to gain a price advantage, many workers in these countries face low wages, below-average working conditions and even forced and abusive child labour.
In a New York Times article entitled “An Ugly Side of Free Trade: Sweatshops in Jordan,” Steven Greenhouse and Michael Barbaro stated that clothing making – “propelled by … Free trade” – has exploded in Jordan and its exports to the United States have increased 20-fold in five years. Nevertheless, there is a shadowless side of free trade, the paper says, that free trade agreements should increase trade between two or more countries. The six main advantages of strengthening international trade are that if there is free trade and if tariffs and quotas are abolished, monopolies will also be abolished because more players can enter the market and join the market. “Trade is responsible for two out of ten job losses. What is happening is that the other eight are not lost because of trade, but because of new technologies, innovation, productivity. An internal market actually creates a level playing field for each member and includes not only tradable goods and products, but also allows citizens of each Member State to work freely throughout the region. Lund shares the arguments we discussed earlier: free trade is a source of global inequality, poor working conditions in many developing countries, job losses and economic imbalances.
But free trade also leads to a “net transfer of working time and natural resources between the richest and poorest regions of the world,” he says. Free trade is advancing the growing global greenhouse gas problem, as workers in developing countries end up producing goods at much lower costs and in less favourable working conditions, usually with older, dirtier energy sources such as oil and coal, Hornborg says.