Advantagesfor the United States
Therehas been extension of foreign markets to other countries in thesearch of new markets for goods exported from the United States.South Korea now invades the large market that was initially enjoyedby the United States thus, leading to a search of new areas of trade(Vanhanen, 2013). However, this has also positively influenced theeconomy of the United States.
Inaddition, there is price reduction on consumer goodsbythe United States due to the bilateral trade agreements: this isbecause the demand for various products declined, forcing the pricesto go down (Buckley et al., 2014). In addition, the amount of cashthat various businesses pay for the imported materials has alsogreatly reduced, making the life of the citizens cheaper andaffordable.
Thesebilateral agreements have led to increased innovation by the UnitedStates thus, positively influencing in the productivity due to theenhanced technology to meet the demand of the citizens since theimports have greatly reduced (Manyin et al., 2012). Furthermore, theProtection of Intellectual Property Rights of the citizens by thegovernment has been enhanced thus making it easy to avoidinfringement by their trade partners.
Disadvantagesfor the United States
Thepressure from China to the United States has been enhanced with anaim of making the U.S. take responsibility of improving theirrelationship with North Korean. This step could segregate the UnitedStates and South Korea thus, reducing its trading partnership.Additionally, South Korea is strongly opposed to the United Statespolicy, and this has made them try to broaden their options forforeign policy (Buckley et al., 2014). It has also led to a poorrelationship between the two trading country.
Chinais posing a great threat to the United States in the South KoreanMarket, since they produce more cheap and affordable goods, unlikethe United States. Therefore, there is a higher potential of losingthe South Korean market. China has tried to create division amongstSouth Korea and the United States, giving the United States adisadvantage and poor correlation with its trading partner.
Pendingapplications, candidate countries, or associate members
Singaporeis in the pursuit of joining Free Trade Agreements. The EPAs it hasjoined includes New Zealand in the year 2001, Japan (2002), EFTA(2003), and Australia in the year 2003. Other EPAs it joined are theU.S (2004), Jordan (2005), India (2005), Republic of Korea (2006),Panama (2006), Peru (2009) and China in the year 2010 (Manyin etal., 2012). It is yet to start negotiating with Costa Rica and Egypt.The Gross Domestic Product of Singapore approximates at $50, 7705,while its Gross National Product is $49,850
Thailandhas active economic partnerships with countries like New Zealand andJapan. Negotiations are underway with countries like Peru and India,but these talks have not yet completed. The Gross Domestic Product is387.3 billion USD whereas its Gross National Product is 899.7 billionPPP dollars.
Malaysiahas made agreements ad bilateral talks with countries like Japan inthe year 2006, Pakistan was in 2008, New Zealand (2009) and Chile,which finalized in the year 2010. It was to proceed with negotiationswith Australia, but the talks remained suspended. Besides, Malaysiahas also commenced negotiations with Turkey, and the discussion isstill ongoing (Buckley et al., 2014). The Gross Domestic Product ofMalaysia is 296.22USD, while its Gross National Product approximatesat $504.864 billion.
TheRepublic of Korea has signed FTAs with three countries that includeChile, India, and Singapore. It signed an agreement with EU in 2009,which came to force in the month of July, in the year 2011. Besides,its negotiations with Japan remained suspended (Vanhanen, 2013). TheGross Domestic Product of the Republic of Korea is approximated at1377.89 billion USD, while its Gross National Product approximates at3763.81 billion USD.
Chinacompleted free Trade Agreement with Hong Kong in the year 2003, Macaoin the year 2003, ASEAN (2004), Chile (2005), Pakistan (2006), NewZealand (2008), Singapore in 2008, and Peru in the year 2009. It hasbeen in negotiations with Sothern African Customs Union, GulfCooperation Council, Iceland, Australia, Norway and Costa Rica.Japan, Republic of Korea and China have assented to commencing ajoint research, which is yet to start (Manyin et al., 2012). TheGross Domestic Product of China is approximated at $ 10,866,444million while its Gross National Product is estimated to be at $1,329 billion.
Advantages/Implicationsof Free Trade Agreements
TheFree Trade Agreements has resulted in increased innovationdueto competition within these trade regions thus, resulting inimproved products, well-paying jobs, improved savings, investments,and extension of new markets. The improved innovation is advantageousto the citizens since it improves their economic conditions. Theprice of consumer goods have also decreased, especially in the UnitedStates thus, resulting in improved living standards of the people,since citizens can easily afford the imported products that are soldat lower cost (Buckley et al., 2014).
Moreover,Free Trade reinforces laws, spurs development in developing countrieswithin these trading groups, and increases freedom within thesetrading group member countries. It is due to the good relationshipsthat exist between the states within the agreement. The United Stateshas experienced an increase in GDP of approximately 2.1% over thepast decade due to these trade groups that have been brought about bythe Free Trade Agreements.
Whythese countries should become full members of the FTAs they haveapplied to
Basedon my assessment, these countries should become part of the FreeTrade Agreements because they will have large markets for theirproducts, reduced tariffs on their goods and monotony will not bepart of any country since freedom of trade is enjoyed amongst thecountries.
Buckley,R. P., Lo, V. I., & Boulle, L. (2014). Challengesto multilateral trade: The impact of bilateral, preferential andregional agreements.Alphen aan den Rijn: Kluwer Law International.
Manyin,M. E., Chanlett-Avery, E., Nikitin, M. B., Taylor, M. A., &LIBRARY OF CONGRESS WASHINGTON DC CONGRESSIONAL RESEARCH SERVICE.(2012). U.S.-South Korea Relations. Ft. Belvoir: Defense TechnicalInformation Center.
Vanhanen,T. (2013). Democratization:A comparative analysis of 170 countries.London: Routledge.