When Did the Free Trade Agreement Start?
The Free Trade Agreement, or FTA, is a trade agreement between two or more countries that aims to promote free trade by reducing or eliminating trade barriers such as tariffs, quotas, and other restrictions. It is one of the most common forms of international agreements aimed at liberalizing trade.
The idea of a free trade agreement has been around for centuries, with the earliest recorded agreements dating back to the 19th century. However, the modern form of free trade agreements emerged in the 1980s and 1990s as countries began to recognize the benefits of closer economic integration.
The first free trade agreement to be implemented was the United States-Canada Free Trade Agreement (FTA) in 1989. This agreement was negotiated by the governments of the United States and Canada and aimed to remove trade barriers between the two countries, including tariffs and other trade restrictions.
The US-Canada FTA was seen as a significant step forward in the liberalization of trade, and it was followed by the North American Free Trade Agreement (NAFTA) in 1994. NAFTA expanded the free trade area to include Mexico and became one of the largest free trade agreements in the world, covering a population of over 450 million people and a combined GDP of over $20 trillion.
Since NAFTA, many countries have entered into free trade agreements with other countries, regional trade agreements, and the World Trade Organization (WTO) agreements. These agreements have been instrumental in promoting economic growth, creating jobs, and increasing trade between countries.
In conclusion, the Free Trade Agreement started with the United States-Canada Free Trade Agreement in 1989 and has since grown to include many countries and regions worldwide. The concept of free trade has been around for centuries, but the modern form of free trade agreements emerged in the 1980s and 1990s as countries recognized the benefits of closer economic integration. Free trade agreements have been successful in promoting economic growth, creating jobs, and increasing trade between countries, and they continue to be an essential tool for promoting global economic integration.