What Problem Is A Free Trade Agreement Most Likely To Cause For An American Business

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The idea of a trade deal actually dates back to the administration of Ronald Reagan. During his tenure as president, Reagan made a campaign promise to open trade in North America by signing the Trade and Tariffs Act in 1984. Four years later, Reagan and the Canadian Prime Minister signed the Canada-U.S. Act. Free trade agreements. In the first case, the non-application of national labour law may be formally challenged in the context of the dispute settlement procedure within the meaning of the Free Trade Agreement (Article 22.16.1). Such a remedy is not available for the other two provisions, which are supported in principle. The USTR highlights the cooperative mechanisms to improve workers` rights in the free trade agreement,(28) but workers` representatives argue that unless all three are enforceable, the free trade agreement “provides meaningful trade discipline where – and only where – the country`s labor laws are adequate. Otherwise, we would be content to achieve low and unacceptable labour standards through our trade agreements. (29) Although Chile has a strong track record of supporting fundamental labour rights, this difference in treatment is questioned as insufficient for application in other countries, in particular in Central America(30), and therefore raises the question for some as to whether the agreement with Chile constitutes or should set a precedent. The specific issue of FTA professionals triggers the most debate.

The Labor Advisory Committee, one of six private sector advisory committees for the USTR, criticizes the provisions on the temporary entry of businessmen and professional workers because they appear to allow Chilean workers who have no direct employment other than a service contract to enter the United States. (43) Others expressed concern that Chilean professionals would be bound by a lower standard than the existing H-1B Law (expertise in relation to highly specialised knowledge) and that the stricter certification requirements for H-1B employers would also be omitted. U.S. imports from Chile have steadily increased since 1992, reflecting continued U.S. interest in Chilean products and increased U.S. expansion. . . .