Easier access to each other`s markets means that trade between members is likely to intensify. The creation of trade outcomes is possible when free trade replaces high-cost domestic producers with lower costs and more efficient imports. Since low-priced imports lead to lower prices, there is a “consumption effect” with increased demand due to lower prices. Some of these agreements are free trade agreements that include a reduction in import customs and non-tariff controls in order to liberalize trade in goods and services between countries. There are many ways in which countries can “protect” their economies from foreign competition. One of them is through trading blocks. The number of ATRs has increased from about 70 in 1990 to more than 300, reflecting both the transition to stronger intra-regional trade, particularly among many fast-growing emerging economies around the world. No regional trade agreement is the same! While the creation of trade blocs such as the European Union and NAFTA (North American Free Trade Agreement) has led to the creation of trade between members, it is also more difficult for countries outside the space to trade, which leads to what is called a trade reorientation, where a company that would otherwise have obtained activities in that country is prevented from doing so because of a trading bloc and the obstacles they have erected for third countries. In recent years, there has been a flood of bilateral trade agreements between countries and the emergence of regional trading blocs.
The European Union now has more than 30 separate international trade agreements, including those with countries such as Colombia and South Korea. Free trade zones are created when two or more countries in the same region agree to remove or remove trade barriers for all other members` products. Jobs can be created as a result of increased trade between Member States. Dr.-CAFTA is probably the most important for the creation of new highways that will cross the Panama site in Mexico and even Texas. In order for these roads to become a reality between these different nations, a trade agreement such as DR-CAFTA must reduce tariffs or abolish them completely in order to bring materials and work in and out of construction zones. Opponents of DR-CAFTA argue that this trade agreement, like NAFTA, is just another way to globalize and monetize the interests of massive groups, not the interests of small businesses or citizens of a given nation. Supporters of DR-CAFTA see it as a natural evolution for the territory and a thoughtful way to compete with mass global producers such as China. Some people are concerned about the expansion of free trade and the creation of trading blocs. According to the Congressional Budget Office, the search for free trade could “distract the world from multilateral negotiations and lead to the development of rival trading blocs.” Other concerns include the exploitation of developing countries by industrialized countries; environmental issues, as the production of goods abroad is not regulated uniformly from one country to another; labour problems related to fair wages and job losses from industrialized to developing countries, as well as political concerns that could influence negotiations between trading partners. The video below details and compares the different types of trade agreements: the development of a regional trading bloc should stimulate the development of others.