In Venice I read how the Japanese are concerned about the U.S.-South Korea free trade agreement, and might seek their own trade deal with the United States. The Japanese are afraid of being "left out in the cold." I’ve also read speculation that a South Korean trade agreement might make Congress look more favorably upon free trade agreements with Latin America. So why might one free trade agreement lead to others? I can think of a few hypotheses:
1. Free trade agreements lead to considerable amounts of trade diversion, not just more trade. The "left out" countries fear that trade diversion and thus wish to cut their own bilateral deals.
2. Free trade agreements show that other governments have found a commitment to greater trade worthwhile. This may signal that either that benefits of trade are especially high, or that anti-trade interest groups are especially weak.
3. There is a big copycat effect in politics and public opinion, as evidenced by the historical clustering of revolutions and reforms.
4. A bilateral free trade agreement means that the U.S. will regard South Korea as a closer political ally than before, and Japan (and others) wish to keep in step. In particular Japan wishes to keep "first dibs" on U.S. military protection and be the "go-to" country in international fora and joint endeavors.
What have I left out?
Note that under #1, bilateral trade agreements might lead to inefficient trade diversion, but the resulting spread of trade agreements will reverse many of those costs.
Here is John Nye on the historical tendency of free trade agreements to prove contagious. Here is Mark Thoma on trade diversion.
The bottom line: I haven’t read the details of the U.S.-South Korea agreement, but I suspect that in this setting even a highly imperfect trade agreement is a net plus.
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We carry both original and aftermarket cell phone accessories in stock:
iphone display assembly,iphone housing,rear panel,battery,headphone jack.rear flex,camera, case etc,
Nextel i880 phone.i880 flex cable,i880 lcd,i880 housing,i880 lens.i880 rear housing.i880 battery door.i880 antennas.i880 flip
Nextel i885 flip.i885 flex cable.i885 lcd,
Nextel i580 phone,i580 flex cable.i580 rear hosuing.i580 mainboard
Nextel i930 rear housing.i930 small lcd,i930 lens.i930 battery door,i930 flip,
Nextel ic902 housing,Nextel ic502 housing,Nextel ic402 hosuing,
Nextel i870 flip.i870 samll lcd with flex,i870 rear housing,i870 battery door.
Nextel i860 phone.i860 flip.i860 small lcd with flex.i860 rear housing,i860 lens,i860 big lcd,i860 antennas.i860 battery door.
Nextel i855 flip.i855 flex cable,i855 battery door,
Nextel i850 phone.i850 flip.i850 hosuing.i850 rear housing.i850 battery door.i850 flex cable.i850 battery door
Nextel i830 flip.i830 small lcd with flex.i830 rear housing,i830 keypad,i830 antennas,
Nextel i730 flip.i730 rear housing,i730 keypad.i730 lcd.
Nextel i560 flip.i560 lcd.i560 rear hosuing,i560 antennas,i560 housing.i560 flex cable
Nextel i450 flip.i450 lcd,i450 flex cable.
Nextel i455 flip.i455 lcd.i455 flex cable.
Nextel i275 housing, i315 hosuing,i605 housing.
and motorola parts.nokai parts.samsung parts,Sony Ericsson.lg. parts. in stock.
welcome to order
Tanbigo Industry Limited
http://www.tanbigo.com
Email:Jack@tanbigo.com
MSN:Jack@tanbigo.com
skype:jack881138
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