The failure of Doha has enabled China to reach a global level of trade. It has signed bilateral trade agreements with dozens of countries in Africa, Asia and Latin America. Chinese companies have the right to develop the country`s oil and other raw materials. In return, China provides loans and technical or commercial assistance. President Clinton`s january 31, 1995 announcement of mexico`s provision of approximately $50 billion, and international loans and loan guarantees were taken out with considerable relief in Mexico and in the U.S. business community. After receiving the news, the peso appreciated and Mexican interest rates on 28-day government bond certificates fell. Although economic indicators fluctuated to some extent after the announcement, greater stability was achieved. The package included a $20 billion line of credit from the United States, $17.759 billion from the International Monetary Fund, $10 billion from the Bank of International Settlement, $1 billion from Canada, $1 billion from Latin American countries and $3 billion from the International Trade Bank.
Since 1990, some 27 bilateral, trilateral or multilateral free trade agreements have been signed in Latin America, according to the Inter-American Development Bank. These agreements, while important in themselves, now play a greater role in creating important bases for the construction of a free trade area for the United States by 2005. The goal of the free trade agreement, which builds on NAFTA`s achievements, is to create a free trade area covering the entire Western Hemisphere until 2005. With the participation of the United States, America will be the largest trading space in the world, with a gross domestic product of more than $9 trillion and a market of more than 750 million consumers. Some countries have free trade agreements and are in the process of expanding them, while others have established common unions and markets. This development has a profound impact on small businesses around the world. Other trade agreements cover wider geographical areas and have been implemented because of the perceived economic benefits for Member States to approve certain trade rules. The TPP is an example of a trade agreement with member countries as far away as Australia and Canada. The United States was part of the TPP until January 2017. The importance of adopting free trade agreements has increased as the world has become more competitive in recent years. Nevertheless, there remains some confusion as to the impact of trade and free trade agreements and whether extended trade helps or harms American workers and our economy. Trade agreements occur when two or more nations agree on trade terms between them.
They set tariffs and tariffs on imports and exports by countries. All trade agreements concern international trade. In the first two decades of the agreement, regional trade increased from about $290 billion in 1993 to more than $1 trillion in 2016. Critics are divided on the net impact on the U.S. economy, but some estimates amount to $15,000 a year for the net loss of domestic jobs as a result of the agreement. Michael Porter, a contemporary trade theorist, says a nation`s main economic goal is to create a high and growing standard of living for its citizens. Porter says the ability to do so depends on the productivity with which a nation`s resources are used. Productivity is defined as the value of production produced by a unit of work or capital.