Benefits From Existing Free Trade Agreements
The United States has implemented 9 free trade agreements (FTA) with a total of 14 countries. In addition, President Bush signed agreements with Costa Rica, Oman, and Peru that are awaiting implementation. Free trade negotiations have also concluded with Colombia, Panama, and South Korea and we encourage Congress to consider them as soon as possible.
Free trade agreement negotiations between the U.S. and Australia concluded in February 2004. Since the agreement went into force in January 2005, the U.S.-Australia Free Trade Agreement has stimulated a 59% increase in the U.S. trade surplus with Australia. In 2007, the U.S. exported $19.2 billion in goods and imported $8.6 billion in Australian products. USTR Australia FTA Page
Since its implementation in August 2006, the U.S.-Bahrain Free Trade Agreement has increased export opportunities for American business. Between 2005 and 2007, U.S. exports to Bahrain grew by 69% to $591 million while imports from Bahrain increased by 45% to $626 million. USTR Bahrain FTA Page
Central American Free Trade Agreement (CAFTA-DR)
USTR CAFTA-DR Page
- Costa Rica: Costa Rica has not yet implemented CAFTA-DR. The President signed implementing legislation on August 2, 2005. In 2007, American firms exported $4.6 billion in goods to Costa Rica, and Costa Rica sent $3.9 billion in imports to the U.S.
- Dominican Republic: The Dominican Republic implemented CAFTA in March 2007. In 2007, U.S. exports to the Dominican Republic were valued at $6.1 billion, an increase of 13% from the year before. That same year, the U.S. imported $4.2 billion in goods from the Dominican Republic.
- El Salvador: Since implementing CAFTA in March 2006, the bilateral trade relationship between the U.S. and El Salvador has blossomed. From 2005 to 2007, U.S. exports to El Salvador grew to $2.3 billion, an increase of 25%. Also in 2007, the U.S. imported just over $2 billion in merchandise from El Salvador.
- Guatemala: Since Guatemala accessed to CAFTA in July 2006, U.S. exports have increased by 43% to $4.1 billion in 2007. The U.S. also imported $3 billion in goods from Guatemala that year.
- Honduras: Since Honduras joined CAFTA in April 2006, U.S. exports have increased by 37%. In 2007, U.S. businesses exported $4.5 billion in goods to Honduras. Americans also imported $3.9 billion in goods from the country.
- Nicaragua: Since Nicaragua joined CAFTA in April 2006, U.S. exports to Nicaragua have increased by 42%. In 2007, the U.S. exported $890 million to Nicaragua and imported $1.6 billion in goods from Nicaragua.
Since the U.S.-Chile Free Trade Agreement went into force in January 2004, American exports to Chile have increased by 206% to over $8.3 billion in 2007. Chilean exports to the U.S. have increased 143% under the Free Trade Agreement to just under $9 billion in 2007. USTR Chile FTA Page
Negotiations between Colombia and the United States concluded in February 2006 and the President submitted the Agreement for Congressional consideration in April 2008. According to the agreement, Colombia will remove barriers to trade in services, provide a secure, predictable legal framework for U.S. investors operating in Colombia, provide for effective enforcement of labor and environmental laws, protect intellectual property, and provide an effective system to settle disputes. In 2007, the U.S. imported $9.3 billion in goods from Colombia and exported goods valued at $8.6 billion to Colombia. Colombia FTA Page | USTR Colombia FTA Page
The U.S.-Israel Free Trade Agreement, our nation’s first free trade agreement, went into force on September 1, 1985. In 2007, the United States was Israel’s largest trading partner. That year, the U.S. and Israel exchanged almost $34 billion in total merchandise trade. USTR Israel FTA Page
Since the implementation of the U.S.-Jordan Free Trade Agreement in December 2001, U.S. exports to Jordan have increased by 170% to over $856 million in 2007, and imports from Jordan increased seventeen-fold from $73 million in 2000 to $1.3 billion in 2007. USTR Jordan FTA Page
Since its implementation of the U.S.-Morocco Free Trade Agreement in January 2006, U.S. exports to Morocco have increased by 155% to $1.3 billion, while U.S. imports from Morocco have increased by 37% to $626 million. USTR Morocco FTA Page
North American Free Trade Agreement (NAFTA)
- Canada – Since implementing NAFTA in January 1994, U.S. exports to Canada have increased by 148%. In 2007, U.S. goods exports to Canada equaled $248 billion. At the same time, imports from Canada have increased by 183% since 1993 to $313 billion in 2007.
- Mexico– Since NAFTA went into force at the beginning of January 1994, U.S. exports to Mexico have increased by 228% to nearly $137 billion in 2007. Between 1993 and 2007, imports from Mexico increased by 444% to $210 billion.
USTR NAFTA Page
President George W. Bush signed the U.S.-Oman Free Trade Agreement in September 2006 but it has yet to go into force. Oman is the fifth Middle Eastern country to sign an FTA with the U.S. The agreement is designed to eliminate tariffs and other barriers and expand trade between both countries. In 2007, the U.S. imported $933 million in goods from Oman and exported nearly $1.1 billion in American-made products to the country. USTR Oman FTA Page
The U.S. and Panama concluded negotiations on a Free Trade Agreement in December 2006. This comprehensive trade agreement will eliminate tariffs and other barriers to trade of goods and services, expand trade between the United States and Panama, and promote economic growth and opportunity. The agreement will eliminate nearly 90 percent of Panama’s tariffs on industrial goods immediately, with remaining tariffs phased out over 10 years. In 2007, the U.S. exported $3.7 billion in goods to Panama while importing $361 million in Panamanian products. Panama FTA Page | USTR Panama FTA Page
President George W. Bush signed the U.S.-Peru Trade Promotion Agreement in December 2007. Upon implementation, eighty percent of U.S. exports of consumer and industrial products to Peru will become duty-free immediately, with remaining tariffs phased out over 10 years. In 2007, Peru exported $5.2 billion in goods to the U.S., while American businesses exported $4.1 billion in merchandise to Peru. USTR Peru FTA Page
Since the U.S.-Singapore Free Trade Agreement entered into force in January 2004, the U.S. trade surplus with Singapore has improved by 455% to $7.2 billion. In 2007, the U.S. exported $26.3 billion in goods to Singapore while importing $19 billion from our partner nation. USTR Singapore FTA Page
Negotiations between the U.S. and South Korea come to a successful conclusion in April 2007. The Korea – U.S. Free Trade Agreement (KORUS-FTA) represents the United States’ most commercially significant FTA in over a decade. The Republic of Korea is the world’s thirteenth largest economy, with a GDP of nearly $1 trillion. Korea is already the United States seventh largest trading partner, with two-way goods trade in 2007 valued at approximately $80 billion. American exports to Korea in 2007 were valued at $34.7 billion, while imports from Korea totaled $34.7 that year. When implemented, the KORUS-FTA will expand trade and investment flows between the two countries across a comprehensive list of sectors. South Korea FTA Page | USTR South Korea FTA Page
Links About Free Trade Agreements