Free Trade Agreements

[RedZero]

Could someone attempt to explain the intention of free trade agreements and what happens once they are put into practice? What is the point, and what actually happens? Technical or laymen terms, whichever you prefer...I'll try to understand.

The reason I ask is because, from what I understand, these agreements aren't necessarily a "good" thing..and using the United States as an example, they have caused the U.S. to lose jobs?

and actually, this question is stemming off from my frustration at how people defend the "job creators" and hate the idea that they be taxed more. It's beginning to piss me off. Yeah, these people are really job creators, what with their tax cuts that have been in place and our stagnant economy with people continuing to lose jobs. Job creators, yeah.

[redwave]

Free Trade agreements strive to eliminate national barriers to capital flow. They do this mostly by eliminating the tariffs that were once imposed to protect domestic industry from foreign competition. These tariffs also served as moral suasion over ones trading partners.

Without these protections, capital will naturally flow to cheap labor/unregulated markets. They are creating jobs, but not here -- why would they if they can freely invest their capital in slave labor markets and then freely import the products into this market? It is a race to the bottom for both workers and the environment. I hope that helps.

[thriller]

Adding to what redwave said, Free Trade Agreements also tend to supersede laws of a nation. I know in Massachusetts the people decided not to buy shrimp from shrimpers who used nets that potentially killed sea turtles. Because of the World Trade Organization declaring this act as 'a barrier to trade' they could only implement the law by pretty much paying a fine to the WTO. Free Trade Agreements are how those that own industries (bourgeoisie) can sell, create, and market a product without having to deal pesky consumers and laborers who care about their environment and financial stability.