First becoming the cornerstone of international economics as a result of the Bretton Woods Conference in 1944, and first leading the world in free trade with the North American Free Trade Agreement in 1993, no country has benefited more from free trade than the United States of America. In fact many economists such as the late Milton Friedman have argued that America owes its global dominance to its "laissez-faire" trade practices.
Increased Exports
When trade barriers are lifted, more American goods are sold. Such was the case in Mexico where two-way trade between the U.S. and its southern neighbor has quadrupled since the implementation of NAFTA in 1993. In 2007, for example, the United States exported over $136.5 billion dollars worth of goods to Mexico--an increase of 242 percent in 14 years. Also, between 1993 and 2005, American agricultural and manufacturing exports to Canada grew by 133 percent.
Increased Efficiency
American corporations free from artificial barriers, tariffs or restrictions are able to increase efficiency by shifting assembly of their products overseas, thus reducing costs and increasing profits. Between 1993 and 2006, American companies' manufacturing output rose by almost 60 percent.
Increased Employment
Contrary to popular belief, US unemployment actually fell in the years following free trade, averaging some 5.1 percent after NAFTA, compared to an average of 7.1percent in the 13 years prior to the agreement. Furthermore, wages have also risen, growing 1.5 percent annually over the same period.
Increased Stability
Greater economic trade has brought about an unprecedented period of international stability that only serves to benefit American foreign policy. Whereas during the Cold War trade barriers served to fuel hostilities between the U.S. and the communist world, today both Russia and China are among America's most important trading partners. In fact, many have argued that it was the influx of American luxury goods that brought about the fall of Soviet Communism and the steady democratization of the People's Republic of China.
Increased Dominance
Today the United States of America is the world's only superpower--an economic powerhouse that dominates the globe. The US economy is the world's largest, with an estimated GDP of $14.3 trillion in 2009, almost three times the size of that of its closest competitor. As free trade continues to topple barriers to American products, the U.S. economy stands only to benefit further.
