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On the other hand, some local industries benefit. They are finding new markets for their duty-free products. These industries are growing and employing more labour. These compromises are the subject of endless debate among economists. This has three major effects on social welfare. Consumers are less well off due to the decline in consumer surplus (green region). Producers are doing better because the surplus of production (yellow region) is increasing. The government also has additional tax revenues (blue region). However, the loss to consumers is greater than that of producers and government.

The extent of this social loss is reflected in the two pink triangles. The abolition of tariffs and free trade would be a net benefit to society. [20] [21] Selling U.S. free trade agreements to partner countries can help your company gain a foothold and compete more easily in the global marketplace by removing barriers to trade. U.S. free trade agreements deal with a wide range of foreign government activities that affect your business: reducing tariffs, strengthening intellectual property protection, increasing the contribution of U.S. exporters to the development of FTA partner countries, fair treatment of U.S. investors, and improving opportunities for foreign government procurement and U.S. service companies.

The Doha Round would have been the world`s largest trade agreement if the United States and the EU had agreed on a reduction in their agricultural subsidies. As a result of its failure, China has gained ground on the world`s economic front through cost-effective bilateral agreements with countries in Asia, Africa and Latin America. The Socialists often reject free trade on the grounds that it allows maximum exploitation of workers by capital. This is how Karl Marx wrote in the Communist Manifesto (1848): "The bourgeoisie [...] established this unique, unscrupulous freedom of free trade. In a word, for exploitation, veiled by religious and political illusions, it replaced the bare, shameless, direct, brutal exploitation. But Marx supported free trade simply because he thought it would accelerate the social revolution. [65] The literature that analyzes the free trade economy is rich.

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