Free trade agreements (FTAs) have proved to be one of the best ways to open up foreign markets to U.S. exporters. Today, the United States has FTAs with 14 countries. In 2006, six new FTAs were implemented: with Bahrain, El Salvador, Guatemala, Honduras, Morocco, and Nicaragua. Last year, trade with countries that the United States has FTAs was significantly greater than their relative share of the global economy. Although comprising 7.5 percent of global GDP (not including the United States), those FTA countries accounted for over 42 percent of U.S. exports.
In an effort to continue expanding economic opportunities for U.S. exporters, the United States is in the process of implementing four more free trade agreements.
Colombia
Colombia is already a strong trading partner and has the potential to be an even greater place to do business. Trade with Colombia offers expanded economic opportunities for U.S. manufacturers, workers, and farmers. It is a growing market for U.S. exporters and a good economic and policy partner to the United States. A Trade Promotion Agreement gives us a framework to make Colombia a better place to do business. In addition, an agreement with Colombia helps further U.S. trade and policy objectives in the region.
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Korea
The U.S.-Korea FTA is a comprehensive trade agreement that will eliminate tariffs and other barriers to trade in goods and services, promote economic growth, and strengthen economic ties between the United States and Korea. This FTA is the most commercially significant FTA for the United States since NAFTA. Korea is a $1 trillion economy and the 7th largest U.S. trading partner. Within the first three years after implementing the U.S.-Korea FTA, 95 percent of consumer and industrial products will become duty-free. The remaining tariffs will be eliminated within 10 years. This FTA will benefit farmers and ranchers by immediately eliminating duties on more than half of current U.S. farm exports to Korea on the date the FTA enters into force.
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Panama
The U.S.-Panama TPA is a tremendous opportunity for U.S. exporters. This comprehensive trade agreement will eliminate tariffs and other barriers to trade goods and services, promote economic growth, and enhance trade between the United States and Panama. The agreement will also spur reforms of Panama's domestic legal and business environment that are important to encourage investment, protect intellectual property rights, enhance regulatory transparency, and strengthen protections for workers and the environment.
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Peru
Peru has the potential to be a great place to do business. Trade with Peru offers expanded economic opportunities for U.S. manufacturers, workers, and farmers. It is a growing market for U.S. exporters and a good economic and policy partner to the United States. A Trade Promotion Agreement gives us a framework to make Peru a good place to do business. In addition, an agreement with Peru helps further U.S. trade and policy objectives in the region.
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