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The United States Free Trade Agreements: How Successful Have They Been?

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  • Andreas Udbye

Abstract

The United States has entered into Free Trade Agreements with 20 countries. Did these agreements boost trade—especially exports—beyond that experienced by a control group of 80 other countries? Did the efforts and costs in implementing and maintaining these agreements yield incremental trade? Discussing five attenuating factors and introducing a method utilizing compound annual growth rates, we compared the pre- and post-implementation trade growth of the agreements, and also against the control group. Results are mixed and some agreements disappoint, possibly with basis in an attenuating factor. The overall effect on U.S. exports from the agreements is low.

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  • Andreas Udbye, 2017. "The United States Free Trade Agreements: How Successful Have They Been?," The International Trade Journal, Taylor & Francis Journals, vol. 31(5), pages 457-478, October.
    • Handle: RePEc:taf:uitjxx:v:31:y:2017:i:5:p:457-478
    DOI: 10.1080/08853908.2017.1362365
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    References listed on IDEAS

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    1. Grossman, Gene M & Helpman, Elhanan, 1995. "The Politics of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 85(4), pages 667-690, September.
    2. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
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