AKC Note: The negotiators met last week in Atlanta with ministers arriving on Wednesday with an expectation that it would be resolved before the weekend. Negotiations were extended over the weekend and it appears that the countries have agreed today.
There are many articles covering this agreement and I use the above link purely as it was the top one on the Google list! There will be opinions on every side – and we still have very little idea of what is included in the agreement! Based on previous FTA’s it is difficult to take much encouragement that it will be good for the U.S. manufacturing industry or indeed the U.S. balance of trade. The most recent significant FTA the U.S. entered into was with South Korea in 2012 with the promise of increased export for the U.S., and yes, exports did increase, but imports increased much more leaving the U.S. – S. Korea trade balance deteriorating as follows:
US Trade Balance with S.Korea
|
|
2010
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-$10.05 billion
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2011
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-$13.20 billion
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2012
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-$16.62 billion
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2013
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-$20.75 billion
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2014
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-$25.05 billion
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to 7/2015
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-$17.30 billion
|
Source U.S. Census Bureau
Not much to celebrate I am afraid.
Alasdair Carmichael
Carmichael International
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