Buy custom The move towards bilateralism and regionalism in the United States of America
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Business
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| Number of pages / Number of words: |
3 / 685 |
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Once the agreement is fully implemented and members are enjoying increased market power, due to trade diversion and increased market power custom unions cannot sustain low external tariffs
The first bilateral PTA the US negotiated was with Israel in 1985, but the underlying reasons for this agreement was not trade benefits, as Israeli trade does not even amount to 3 percent of US annual trade (EIU, 2005)...
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However, it was argued that Israel was an isolated strategic alley, and Israel also have a highly influential political lobby in the US, so the PTA was more an Israeli reward (Rosen, 1989; Feinberg, 2003).
As mentioned earlier, although the agreement is called a Free Trade Agreement, there are several significant sectors that are exempt or restricted from the agreement, such as agricultural areas like sugar (USTR, 2005)...
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