A prolonged American economic resurgence requires free trade.

The possibility of trade in products and services between parties without the imposition of tariffs and other government restrictions is made possible by the removal of trade barriers. The benefits and drawbacks of adopting a global framework for free commerce are hotly debated topics. However, a sizable portion of economists argue that removing restrictions on free trade will increase the overall prosperity of the parties involved. (Irwin, 2015). The elimination of trade limitations in the US is the main topic of this essay. The main claim is that promoting free trade is necessary for a long-term revival of the American economy.

The American constitution mandated the removal of all commerce restrictions among the 50 states. For years, trade dealings with other countries was principally free (Irwin, 2015). However, after the 1929 crash of the stock market and the successive years of economic slump in the entire world, countries increasingly started employing protectionist measures and became more wary of trade dealings with other countries. Protectionism only aggravated the problem. Even though the US sluggishly recuperated from the economic downturn, Japan and Europe became ensnared in WWII (Irwin, 2015). Soon after the WWII, the United States turned out as an economic giant, and other nations sought after reopening trade.

The GATT signed in 1948 played a critical role in lowering import tariffs so as to increase trade (Shally-Jensen, 2011). In spite of the backlash among the workers in some industries). The NAFTA is still one of the most wide-ranging free trade arrangements across the globe, boosting the United States’ exports to Canada 66% and Mexico 150% in the first decade only (Folsom, 2014). Essentially, removing trade restrictions is crucial for a sustained US Economic recovery; this is evident in the stellar economic expansion of the US in the past years. From 1990, the United State economy has expanded by approximately 23%, contributing about $2.1 trillion to the United States’ GDP and increasing the overall wealth of the American consumers by about $5,500 (Folsom, 2014). The United States’ economy responded well to the expansion of trade that happened after the signing of NAFTA in 1993 (Villareal, & Fergusson, 2015). The imports of goods and services have gone up 115% since 1990. Besides, since 1991 the proportion of the full-time employment has augmented by about 13%. As a matter of fact, the aggregate level of employment went up by two million between 1992 and 1999 alone (Froning, 2000).

Further, the libertarian argument advocating for free trade maintains that the US economy has always prospered without the intervention of the government, and the international economy should be no different. Through facilitating the opportunities for American businesses, the removal of trade barriers rewards US business by increasing market share, sales, and profit margin. Business corporations can decide to build on these opportunities by expanding their business activities, venturing into new markets, and creating well-paying jobs. Certainly, US exports support over twelve million jobs within the country (Froning, 2000).

Conclusively, it is evident that international trade is an essential framework upon which the prosperity of America is centered. The removal of trade restrictions creates a free market that stimulates continual innovation and results in improved products, well-paying jobs, and a wider market for exportation. When the capital, goods, as well as, services can flow unrestricted across the United States borders, the American can maximize the opportunities availed by the international marketplace for continued and sustained economic improvement and recovery. As such, free trade is crucial to a sustained American economic recovery.

References

Folsom, R. (2014). NAFTA and Free Trade in the Americas in a Nutshell, 5th. West Academic.

Froning, D. (2000). The benefits of free trade: a guide for policy makers. The Heritage Foundation. http://www.heritage.org/trade/report/the-benefits-free-trade-guide-policymakers#_ftn2

Shally-Jensen, M. (2011). Encyclopedia of contemporary American social issues. Santa Barbara, Calif: ABC-CLIO.

Villareal, M., & Fergusson, I. F. (2015). The North American Free Trade Agreement (NAFTA).

Irwin, D. A. (2015). Free trade under fire. Princeton University Press.