ree trade agreements make it easier for big businesses to import products from poor countries because lower trade barriers allow them to take advantage of cheap labor costs. The problem is that cheap labor often has a high human cost.
After Jordan signed a free trade agreement with the United States in 2001, for example, sweatshops proliferated in the country, according to a 2006 report from The New York Times. Major American retailers ordered millions of dollars' worth of clothing from Jordan, where manufacturers promised low prices. They kept this promise by allegedly forcing employees to work up to 20 hours a day, often for less than the state-mandated minimum wage. Without the free trade agreement, it's unlikely American retailers would have placed so many orders in Jordan because trade barriers would have made the clothes too expensive.
Read more : http://www.ehow.com/list_6113059_disadvantages-trade-agreements.html
ree trade agreements make it easier for big businesses to import products from poor countries because lower trade barriers allow them to take advantage of cheap labor costs. The problem is that cheap labor often has a high human cost.After Jordan signed a free trade agreement with the United States in 2001, for example, sweatshops proliferated in the country, according to a 2006 report from The New York Times. Major American retailers ordered millions of dollars' worth of clothing from Jordan, where manufacturers promised low prices. They kept this promise by allegedly forcing employees to work up to 20 hours a day, often for less than the state-mandated minimum wage. Without the free trade agreement, it's unlikely American retailers would have placed so many orders in Jordan because trade barriers would have made the clothes too expensive.Read more : http://www.ehow.com/list_6113059_disadvantages-trade-agreements.html
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