by tombrad2 on Thu Mar 06, 2008 3:34 pm
just my view on free trade agreements. For Chile at least has been very good business, See the figures:
During 2005, Chile exported 6531 million dollars to USA versus 4722,6 millions on import, 1809 millions superavit to Chile
2895 millions dollars in industrial goods; 2481,7 millions in mining and 821.4 millions in agrículture. All those items has added value and has helping to create and develop good technology specially in cooper mining and agriculture.
There are stings attached for long term interest of the US such as the compromise to defend patents, intelectual property, fight against piracy and even modify in deep the legal system so Chile is giving long term commitments in trade of the dollars balance in excess (almost nothing for US figures)
The argument of "they rob American working posts in benefit off starving salaries in LA" is an economic nonsense, completely nonsense because having cheaper salaries this will be paid in any way, in the global world is impossible to build fences of protectionisms for long time, otherwise the starving salaries are just market salaries, there are many people willing to work for this money, this cost disregard many realities as the cheaper cost of living in Latin America and the lower of aceptable standard to people. Is just demagogy, not economic sense.
The reality is that american salaries in manufacture are not competitive anymore and with or without treaties those working post are condemned, the free tratde agreements just sincere this reality and take the oportunity to negotiate some strategic advantages in the long term.
American economy is everyday more dependient on intelectual property and every day more easy to copy, just see the music and entertaining industry, just imagine what would happen if many LA countries simply refuses to pay for intelectual property such as patents, industrial patented process, software and entertaining or, worse, if they agree in words but let it copy in facts. That is what FTA aimed to ensure for USA