[22] In general, trade diversion means that a free trade agreement would divert trade from more efficient suppliers outside the area to less efficient suppliers within the territories. On the other hand, the creation of trade implies that a free trade agreement creates trade that might not otherwise have existed. In any case, the creation of businesses will improve the national well-being of a country. [15] These occur when one country imposes trade restrictions and no other country responds. A country can also unilaterally ease trade restrictions, but this rarely happens. This would put the country at a competitive disadvantage. The United States and other developed countries are only doing this as a kind of foreign aid to help emerging countries strengthen strategic industries that are too small to be a threat. It helps the economies of emerging economies grow and creates new markets for U.S. exporters. Free trade agreements help create an open and competitive international market. The benefits of free trade were outlined in On the Principles of Political Economy and Taxation, published in 1817 by the economist David Ricardo.

The intention of this dictionary was to establish a broad list of terms that are often used in trade negotiations and, in particular, in the context of the Free Trade Area of the Americas (SAA) in order to provide an information tool to the general public. The dictionary is presented in the four official languages of the FTAA: English, Spanish, Portuguese and French. The compilation does not attempt to represent the entire universe of terms used and does not seek to prejudge or influence in any way the definitions or approaches currently proposed by a country in trade negotiations. Indeed, many of the definitions contained in the draft SAA agreement, which are still the subject of difficult debates, have been excluded from this dictionary. Definitions are based on generally available sources, including other trade agreements. An alphabetical list of terms is included to facilitate the use of the dictionary. The terms and their definitions are presented through general negotiating themes found in free trade agreements and other trade negotiations. An electronic version of this document can be found at iadb, OAS and ECLAC.

Selling to U.S. Free Trade Agreement (SAA) partner countries can help your business more easily enter and compete in the global market by reducing trade barriers. U.S. free trade agreements deal with a large number of activities carried out by foreign governments that impact your business: reduced tariffs, better intellectual property protection, greater contribution by U.S. exporters to the development of product standards for FTA partner countries, fair treatment for the United States. . . .