According to CBO, the consensus in economic studies is that PMAs have had a relatively small positive impact on all U.S. trade (exports plus imports) and, first, on the U.S. economy through this channel. The impact was small, given that agreements were concluded primarily between the United States and countries with much smaller economies and tariffs and other trade barriers were generally low when the agreements came into force (see table below). THE PTAs had little impact on the U.S. trade balance (exports less imports) and slightly increased foreign direct investment flows, in particular by encouraging additional U.S. investment in Member States` economies. As a result, the indirect effects of EPA on productivity, production and employment in the United States have also been weak and positive. Empirical estimates support this view. However, these estimates are uncertain and may be underestimated, as the effects of non-tariff provisions are difficult to measure and data problems prevent researchers from determining the impact of ATPs on the service sector. Preferential trade agreements (EPAs) are treaties that remove trade barriers and set rules for international trade between two countries or a small group of countries.
ATPs have a direct impact on a country`s economy by changing its trade and investment flows. TADs have an indirect impact on other aspects of a country`s economy, such as productivity, production and employment. As of August 2016, the United States had established 14 PTAs with 20 trading partners. This report examines the economic literature on trade and PTAs and summarizes the results of this literature on the impact of trade and PTAs on the U.S. economy. The United States has 14 preferential trade agreements with 20 of its trading partners. According to the CBO, the consensus in economic studies is that, overall, these agreements have had little positive effect on the U.S. economy.
The United States negotiates and suspends free trade agreements (FTAs) and PTLs, also known as preferential programs, to promote the prosperity of the U.S. economy. Free trade agreements and PTLs open new markets for U.S. exports, protect U.S. producers and workers, and promote free and fair trade among our trading partners. The CbP Office of Trade oversees the implementation of these international instruments after they are negotiated by the U.S. Trade Representative and adopted by the U.S. Congress. The Office of Trade manages a portfolio of 15 free trade agreements with 21 countries and about nine other trading programs with more than 179 countries, including preferential programs such as the Generalized Preference System (GSP) and the Africa Growth Opportunity Act (AGOA).