RESOURCES
CURRENT AND PENDING TRADE AGREEMENTS: THE 2020 U.S. TRADE AGENDA B Y J O H N T. H Y A T T
1. Israel FTA became effective August 19, 1985 2. The North America Free Trade Agreement (NAFTA) with Canada and Mexico became effective January 1, 1994 The agreement is to be replaced by the United States-Mexico-Canada Agreement (USMCA) which is expected to pass Congress the 1st quarter of 2020. There are six major updates: • U.S. Auto Manufacturing Boosted • Higher Enforcement of Labor Laws • U.S. Dairy Farmers Gain Additional Access • Update NAFTA for the Digital Era • Environmental Protections • Congress to Have Control Over Biologic Drugs 3. Jordan FTA became effective October 24, 2000 4. Chile FTA became effective January 1, 2004 5. Singapore FTA became effective January 1, 2004 6. Morocco FTA became effective June 15, 2004 7. Australia FTA became effective January 1, 2005 These cutting-edge agreements eliminate tariffs, tackle non-tariff barriers, open services markets, strengthen the intellectual property protections for our knowledge industries, and enhance labor and environmental protections. They level the playing field for U.S. businesses, increase choice and value for American consumers, and provide fresh momentum for open markets. 8. DR-CAFTA (Dominican Republic-Central America FTA) The agreement was signed May 29, 2004 and passed by both Houses of the U.S. Congress on July 27, 2005. Accession did not begin until each country changed its domestic laws to conform to the agreement. Countries were admitted into the agreement during the early months of 2006 in the following order: El Salvador, Honduras, Nicaragua, Guatemala and the Dominican Republic. Costa Rica’s participation was affirmed after an October 2007 countrywide plebiscite; and a further extension granted in order to finalize certain laws relating to monopolies in telecommunications and insurance before the U.S. Trade
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2021 IFFCBANO MEMBERSHIP DIRECTORY
Representative could certify Costa Rica to the President. Such was accomplished in late 2008 and Costa Rica entered into DR-CAFTA as of January 1, 2009. 9. Bahrain FTA became effective January 11, 2006 10. Oman FTA became effective January 1, 2009 11. Peru FTA became effective February 1, 2009 12. Korea FTA became effective March 15, 2012 13. Colombia FTA became effective May 15, 2012 14. Panama FTA became effective October 1, 2012 More than 70 percent of the world’s purchasing power and nearly 95 percent of its consumers are located outside the United States. Businesses that export grow faster and are 8 percent less likely to declare bankruptcy than those that do not, according to the Institute for International Economics. Expanding exports can accelerate economic growth and hiring: every $1 billion of exports supports nearly 6,000 jobs. Free trade agreements (FTAs) can open up new markets to exports. FTAs reduce trade barriers while also establishing common standards and protections for U.S. interests and laws. The U.S. has 14 FTAs with 20 countries, which accounted for over 45 percent of the country’s exports last year. Previously, the Obama Administration was negotiating two broad trade agreements: the Transatlantic Trade
