Title: Why Are Trade Agreements Important? | Bizfluent
Headings: Why Are Trade Agreements Important?
Why Are Trade Agreements Important?
Trade Volume
New Jobs
Product Quality and Variety
Economic Growth

Content: Trade Volume
Since trade agreements create favorable trading conditions, businesses in the member countries have a greater incentive to trade in new markets. For example, when the United States entered into a free trade agreement with Australia in 2005, businesses in both countries were able to export and import more goods without paying any tariffs. The Office of the United States Trade Representative reports that the U.S. exported $18.9 billion worth of goods to Australia in 2009, which represents a 33 percent increase from 2004. During this period, imports from Australia also increased by 3.5 percent. New Jobs
With the expansion of markets comes increased business performance. In particular, small businesses can buy raw materials from other countries within the free trade area without incurring any additional costs and sell more goods in the expanded market. This leads to the creation of new jobs, as the businesses need more personnel to support growing operations. According to USTR, 6,000 new U.S. jobs are created for every $1 billion worth of exports. 00:00
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Product Quality and Variety
Trade agreements open new markets for businesses, so competition increases. To withstand the competition, businesses are forced to build more quality into their products.