The digital age is the perfect time to start a business. Businesses, both big and small, are being connected to their clients directly than ever before and it’s all thanks to the internet. In fact, because of this, the playing field has been leveled somewhat, giving businesses an equal opportunity to flourish.
However, as boundaries blur, the questions of globalization and free trade come to mind. Are they really going to benefit our economy or are they our downfall? Don’t worry, in this article, we are going to flesh out those arguments, focusing on what free trade agreements are, why they’re needed, and of course, their benefits. Let’s get started.
What Are Free Trade Agreements?
Economists have varied opinions as to what the effects of globalization and free trade will bring to our economy, but they do agree on one thing: both of these rely on free trade agreements or FTA. What are they anyway?
In a nutshell, FTAs are contracts made between countries in order to encourage trade between them. FTAs usually have two objectives: to lower tariff rates and protect the investors. If you’re a small business owner and you’re thinking of leveling up and taking your investment overseas, then you can file for a personal loan for the additional capital.
It is one of the fastest and most efficient ways to raise the needed budget and to get ahead of your competitors as soon as possible. We’re guessing that the tides will turn for the better really soon.
Did you know that our country, the United States, is currently maintaining more than a dozen FTAs around the globe? One of the most controversial right now is the USMCA or the United States-Mexico-Canada trade agreement.
Why Do Businesses Need to Be Aware of Trade Agreements?
Before talking about the USMCA, though, let us first discuss why businesses need to concern themselves about trade agreements. Here are a few points to keep in mind:
- The lower tariff rates will allow small businesses access to more affordable imported resources.
- This will also allow them to price their products competitively and perform well on a global scale.
- Finally, FTAs will reduce the challenges that small businesses go through in order to take their brands overseas. One such challenge is expensive import license requirements that larger companies don’t really bother themselves with, especially those that have already established their branches on foreign soil.
Yes, FTAs are really helpful. This is the reason why we’re really keeping an eye out for USMCA.
But what is it anyway? USMCA is the newest trade agreement that is still currently in the works. This means that it hasn’t been signed by the president yet, but if he does, according to Vice Pres. Michael Pence himself, it is expected to be “one of the largest trade deal in American History”.
The Benefits of USMCA
How big? Well, let’s just say that it is projected that it will bring almost $70 billion to our economy, and more than 150,000 jobs. It will also benefit a lot of industries. According to the Office of the United States Trade Representative, the USMCA will benefit food and agriculture trade, automobile and vehicle manufacturing industries, and even digital trade.
There are also new chapters on improved regulatory practices and intellectual property protection. In a nutshell, this agreement seeks to provide us, business owners, as much protection and security as we can possibly hope for, while also helping improve our country’s (and our partner countries) economy.
In Conclusion: How Can We Get the President to Sign?
The USMCA agreement is one of President Trump’s promises to us during his campaign which explains why he is also passionate about passing this agreement as soon as possible. However, due to some important points in the agreement that are yet to be discussed, it hasn’t been signed yet. You might be thinking if there’s any way to help speed up the matter, though. We hear you. There are actually a few steps:
- Inform yourself and other business owners about it. Like what we’re doing right now, you can help spread awareness on how people from different sectors (from businessmen to farmers) can benefit from the USMCA.
- Sign the petition. There are online petitions that you can sign in order to push for the faster processing and signing of this trade contract.
- Finally, you can join a demonstration. There are different sectors that are taking their voices to the streets.
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