The benifits of free trade

The Benefits of Free trade The long-standing U.S. policy of supporting multilateral trade liberalization is consistent with well-established conclusions from economic reasoning and empirical evidence about the benefits of trade to all participating countries. Benefits from Increased Exports and Imports The most-direct economic benefits from international trade arise from the fact that countries are not all the same in their production capabilities. They vary from one another because of differences in natural resources, levels …

…advisable path to take to an eventual goal of multilateral free trade. Foreign policy and tactical considerations are also important. Multilateral free trade is the most desirable trade policy from the standpoint of overall U.S. economic productivity and efficiency. FTAs are similarly beneficial, but to a lesser degree, provided that they do not result in too much trade diversion (and, as noted earlier, trade diversion disappears as more countries are covered by such agreements).