US foreign trade and global economic policies have experienced drastic changes since the days of its founding fathers. Prior to the Great Depression and World War II, government and businesses mostly concentrated on developing the domestic economy irrespective of what went on abroad. Since then however, the US has generally sought to reduce trade barriers and coordinate the world economic system.
Today, the US is the world’s largest trading nation – simultaneously leading the world in imports and being among the top three exporting nations in the world. As the top export market for almost 60 trading nations, the US has had a certain degree of economic and political leverage throughout the world, which allows it to shape global policies towards its own.
One such policy is its commitment to global free trade. The US has had a major role in the formation of global trade agencies such as GATT, as well as its future incarnation as the WTO. Apart from the guidelines set by these agencies, the US also has numerous Free Trade Agreements (FTAs) with individual nations.
Current FTA
US-Israel FTA - since 1985
North American FTA (NAFTA) –;since 1994, including Canada and Mexico
US-Jordan FTA – since 2001
Australia-US FTA – since 2004
US-Chile FTA – since 2004
US-Singapore FTA – since 2004
Dominican Republic-Central America FTA (DR-CAFTA) – since 2005, including Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic
US-Bahrain FTA – since 2006
US-Morocco FTA – since 2006
US-Oman FTA – since 2006
US-Peru Trade Promotion Agreement – since 2007
FTAs waiting approval
Panama-US Trade Promotion Agreement
Colombia-US Trade Promotion Agreement
Republic of Korea-US FTA
Proposed FTAs
Free Trade Area of the Americas (FTAA) – to include all countries in Western Hemisphere except Cuba
US-Middle East Free Trade Area (USMEFTA) – to include most countries in the Middle East
Transatlantic Free Trade Area (TAFTA) – European Union
US-Thailand FTA
US-New Zealand FTA
US-Ghana FTA
US-Indonesia FTA
US-Kenya FTA
US-Kuwait FTA
US-Malaysia FTA
US-Mauritius FTA
US-Mozambique FTA
US-Taiwan FTA
US-United Arab Emirates FTA
US-Southern African Customs FTA – to include South Africa, Botswana, Lesotho, Swaziland and Namibia
US-Ecuador FTA
US-Qatar FTA
US Trade Deficit
The US trade deficit has been a hotly contested issue ever since the US first started posting trade deficits in the 1960s.
On the one hand, economists such as Federic Bastiat and Milton Friedman argue that successful, growing economies should see greater trade deficits while a shrinking economy would result in lower trade deficits.
However, the extent and size of the US trade deficit, particularly that of with China, has caused concerns within the US. In an interview with the Associated Press in 2006, Warren Buffet expressed his belief that “the U.S trade deficit is a bigger threat to the domestic economy than either the federal budget deficit or consumer debt and could lead to political turmoil... Right now, the rest of the world owns $3 trillion more of us than we own of them.”
As such, there has been continual debate on whether the US should reduce its trade deficit.
Find out more the US Trade Deficit on EconomyWatch.com
US Import and Export Indicators and Statistics at a Glance (2010)
Exports: US$994.7 billion
Exports - commodities: agricultural products (soybeans, fruit, corn) 9.2 percent, industrial supplies (organic chemicals) 26.8 percent, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0 percent, consumer goods (automobiles, medicines) 15.0 percent
Exports - partners: Canada 20.1 percent, Mexico 11.7 percent, China 5.5 percent, Japan 5.1 percent, Germany 4.2 percent, UK 4.1 percent
Imports: US$1.445 trillion
Imports - commodities: agricultural products 4.9 percent, industrial supplies 32.9 percent (crude oil 8.2 percent), capital goods 30.4 percent (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery), consumer goods 31.8 percent (automobiles, clothing, medicines, furniture, toys)
Imports - partners: China 16.5 percent, Canada 15.7 percent, Mexico 10.1 percent, Japan 6.6 percent, Germany 4.6 percent
Today, the US is the world’s largest trading nation – simultaneously leading the world in imports and being among the top three exporting nations in the world. As the top export market for almost 60 trading nations, the US has had a certain degree of economic and political leverage throughout the world, which allows it to shape global policies towards its own.
One such policy is its commitment to global free trade. The US has had a major role in the formation of global trade agencies such as GATT, as well as its future incarnation as the WTO. Apart from the guidelines set by these agencies, the US also has numerous Free Trade Agreements (FTAs) with individual nations.
Current FTA
US-Israel FTA - since 1985
North American FTA (NAFTA) –;since 1994, including Canada and Mexico
US-Jordan FTA – since 2001
Australia-US FTA – since 2004
US-Chile FTA – since 2004
US-Singapore FTA – since 2004
Dominican Republic-Central America FTA (DR-CAFTA) – since 2005, including Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic
US-Bahrain FTA – since 2006
US-Morocco FTA – since 2006
US-Oman FTA – since 2006
US-Peru Trade Promotion Agreement – since 2007
FTAs waiting approval
Panama-US Trade Promotion Agreement
Colombia-US Trade Promotion Agreement
Republic of Korea-US FTA
Proposed FTAs
Free Trade Area of the Americas (FTAA) – to include all countries in Western Hemisphere except Cuba
US-Middle East Free Trade Area (USMEFTA) – to include most countries in the Middle East
Transatlantic Free Trade Area (TAFTA) – European Union
US-Thailand FTA
US-New Zealand FTA
US-Ghana FTA
US-Indonesia FTA
US-Kenya FTA
US-Kuwait FTA
US-Malaysia FTA
US-Mauritius FTA
US-Mozambique FTA
US-Taiwan FTA
US-United Arab Emirates FTA
US-Southern African Customs FTA – to include South Africa, Botswana, Lesotho, Swaziland and Namibia
US-Ecuador FTA
US-Qatar FTA
US Trade Deficit
The US trade deficit has been a hotly contested issue ever since the US first started posting trade deficits in the 1960s.
On the one hand, economists such as Federic Bastiat and Milton Friedman argue that successful, growing economies should see greater trade deficits while a shrinking economy would result in lower trade deficits.
However, the extent and size of the US trade deficit, particularly that of with China, has caused concerns within the US. In an interview with the Associated Press in 2006, Warren Buffet expressed his belief that “the U.S trade deficit is a bigger threat to the domestic economy than either the federal budget deficit or consumer debt and could lead to political turmoil... Right now, the rest of the world owns $3 trillion more of us than we own of them.”
As such, there has been continual debate on whether the US should reduce its trade deficit.
Find out more the US Trade Deficit on EconomyWatch.com
US Import and Export Indicators and Statistics at a Glance (2010)
Exports: US$994.7 billion
Exports - commodities: agricultural products (soybeans, fruit, corn) 9.2 percent, industrial supplies (organic chemicals) 26.8 percent, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0 percent, consumer goods (automobiles, medicines) 15.0 percent
Exports - partners: Canada 20.1 percent, Mexico 11.7 percent, China 5.5 percent, Japan 5.1 percent, Germany 4.2 percent, UK 4.1 percent
Imports: US$1.445 trillion
Imports - commodities: agricultural products 4.9 percent, industrial supplies 32.9 percent (crude oil 8.2 percent), capital goods 30.4 percent (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery), consumer goods 31.8 percent (automobiles, clothing, medicines, furniture, toys)
Imports - partners: China 16.5 percent, Canada 15.7 percent, Mexico 10.1 percent, Japan 6.6 percent, Germany 4.6 percent
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