Free trade agreements have become an essential part of global trade today. They are agreements between two or more countries to promote and facilitate trade by reducing or eliminating tariffs, quotas, and other trade barriers. But who started free trade agreements, and what is their history?
The concept of free trade has been around for centuries. The idea is that countries should be able to trade with one another without any restrictions or barriers. However, it was not until the 20th century that free trade agreements began to take shape. The first free trade agreement was signed in 1960 between the European Free Trade Association (EFTA) and the European Union (EU).
The agreement was known as the Stockholm Convention, and it aimed to create a free trade area between the two organizations. The agreement was a success, and it led to the European Economic Area (EEA), which is still in operation today. The EEA is a single market comprising the EU member states, Norway, Iceland, and Liechtenstein.
The United States has also played a significant role in the development of free trade agreements. In 1985, the US signed a free trade agreement with Israel, which was the first bilateral free trade agreement signed by the US. Since then, the US has been involved in many free trade agreements, including the North American Free Trade Agreement (NAFTA) with Canada and Mexico.
Today, many countries have signed free trade agreements with one another. These agreements have been instrumental in promoting international trade and have helped to grow the global economy. Free trade agreements have also been subject to criticism and debate, with some arguing that they harm domestic industries and workers.
In conclusion, free trade agreements have become an integral part of global trade, helping countries to trade with one another freely and efficiently. The first free trade agreement was signed in 1960 between the European Free Trade Association and the European Union. Since then, many countries have signed free trade agreements with one another, promoting international trade and helping to grow the global economy. While these agreements have been subject to criticism, their impact on global trade cannot be ignored.