U.s. Global Free Trade Agreement Strategy

After Bush, Jr. had entered the Waite House,"competitive liberalization"was put forward as strategy. In fact, this strategy is the United States is carrying out the global strategy of free trade agreements in other words. That is the banner of the strategy of free trade agreements. This strategy is the result that the United States foreign trade policy inclined toward regional integration in the 1980s. Although the United States expressed to negotiate with the countries that wish to sign free trade agreement with the United States. In fact, the United States selected the negotiators with own will. Meanwhile, the United States is pressing the multilateral trade system with free trade agreements. Since the United States carried the global strategy of free trade agreements, the United States has signed free trade agreements with twenty countries.In this paper, the first chapter discusses strategy, grand strategy, American global strategy and American global economic strategy from the concept of strategy and so on to expound the strategic theory. The strategy is guideline that relates with the overall situation. In the strategies that have different attribute, national strategy occupies highest level and has most important macroscopic instruction functions. Because the United States is a global nation, it has"a global strategy". The United States national interests, the national objectives, the national strength and the strategic resources, as well as the formulation and implementation strategy international environment is the basic elements of US global strategies. It also constitutes the analysis framework of American global strategy. The American global economic strategy is the most important part of American global strategy. The United States recognized economic strategic objectives are as follows: open the global market and make the developing countries melt into the global economy; The energy market opening integration and the diversification guarantees the energy independence; reforming the international finance system is to guarantee the stability and the growth. The American external economic strength of global economic strategy shows that US has huge import and export scale of goods trade, service trade superiority status and extroversion foreign direct investment tremendous advantages.Chapter two uses the strategy theory to explain that the American global strategy of free trade agreements is the platform of American global economic strategy. The trade liberalization, the investment liberalization and protecting the intellectual property rights constitute the national interests of the American global economical strategy. The trade agreement is main way of the United States achieving the global economic strategy national interests. Free trade agreement is the strategic tool of American global economic strategy. From the strategic prospect, free trade agreement is the platform of the United States achieving the global economic strategy object, even beyond the global economic strategy object. Operating the WTO policy-making mechanism has some difficulties, free trade agreement is the trend of the regional economic integration, the WTO legal framework identified the region economic organization and the regional free trade agreements are regarded as means of promoting security, then together constitute the international environment of US implementing the global strategy of free trade agreements. This chapter thought US has had all factors which formed the global strategy of free trade agreements, namely with the strategy of national interests, the national objective, the national strength and the international environment of implementing strategy. In fact, during its practice, the strategic features more clearly by signing many free trade agreements. In the view of US's law, United States Congress passed the "trade promotion authority" to the US Administration for the implementation of global free agreements strategy to create a legal environment.Chapter three discussed the relationship between the free trade agreement and US-led global trade rules. The international regime theory is deep-rooted known to the trade rule and the guidance of implementing international system strategy. Through common international behavior mode, establishing the principle, norms, the rules and the decision-making procedure which are used to coordinate the international relationship, as well as limits in some specific problems domain and forms the international system. The international regime strategy is a part of hegemony countries'global strategy and in the middle level; From the strategic perspective, at first, the international regime is the main channel for the dominated country to disseminate its cultural values, and also the main way to construct hegemony. The international regime domain is one of American hegemony manifestations. The American hegemony performance is the leading the formulation of multilateral trade system rules and the region economic integration rules. US is establishing rules to extend to other countries through the free trade agreement in investment, intellectual property rights, laborer standard, environment and competition policy and other areas to, thus also has established the American model of regional economic integration. US has lead the rule's formulation through a series of rules innovation, fully displays the American competitive advantage through the rules formulation, then achieving US's economic interests. Chapter four discussed the relationship between the free trade agreements and US's interests in the global economy. Viner wrote The Customs Union Issue which was regarded as representative works of customs union theory, so it also was regarded as the important part of international economy integration theory, The most economists generally agree the Balassa's the international economy integration five kinds of forms which proposed in 1961: (1) free trade area; (2) customs union; (3) common market; (4) economic alliance; (5) complete economic integration. The English economists Robson described the free trade areas economic theory in his book The Economics of International Integration. He thought, although the regional economic integration basic theory all takes the customs union as theory frame, but for the free trade area, also definitely may adopt the similar analytical method. After the North America free trade area operated for 10 years, many researches all thought, US can get economic interests from NAFTA, researches show that US has obtained the economic interests by reaching an agreement with Australia and South Korea. The research also indicated that, at present US altogether signed the free trade agreement with 20 countries, because US all had the international competition strength in agricultural products, high-tech products and service industry, a series of free trade agreements provided external environment for US to obtain economic interests from the world.Chapter five discussed the relationship between the free trade agreements and US global security strategy. The security theory is deep-rooted known to the safety and is the guidance of formulating the security strategy and the security policy. The security strategy is macroscopic, long term and the whole plan for country's security and is in the middle level of security theory and security tool. US's security concept has the distinctive quality which other countries do not have. In 2006, the report, The National Security Strategy of the United States of America, elaborated on the three basic goals: US safety, the consolidating economic boom, the promotion overseas democracy and the human rights, also remarked 9 specific goals. The free trade agreement not only becomes a kind of practice of the security theory, but also is specific implementation tool of the security strategy. US used the free trade agreement to consolidate the Israeli economy, support Jordanian foreign policy, act as the tool of anti-terrorism, expand US's impact on Muslim, maintain the American overseas the military existence, guarantee the safe channel of the oil and consolidate US's status in the Panama Canal. The free trade agreements made US truly become the tools of the global security strategy. Chapter six discussed the relationship between the free trade agreements and Latin American economic integration .The vigorous development of the Latin American nationalism trend is the thought foundation of the Latin American integration theory. The earliest ones who ignited Latin American nationalism are a group of political elites at the end of 19th century. Their nationalism sentiment mainly aims at US. Latin America is developing the first practice of regional economic integration. The Latin America is the earliest area to practice the economic integration among developing countries. According to the statistics of WTO, at present, there are 170 regional trade agreements that are already informed and put them into effect. However, in 170 trade agreements 39 were produced in the Western Hemisphere. Looking from the American history, "the Monroe doctrine" of US in the Latin America is always the core of policy. The essence of the "Monroe doctrine" is that US does not allow the non- Americas states to intervene in Americas. US is supposed to lead the affairs of the Americas, realizing US's in politic and economic interest in Latin America. In June 1990, US proposed the plan of establishing a Free Trade Area of the Americas. FTAA's essence is that US makes plan to integrate Latin American economic integration according to their wish. FTAA's plan has been challenged by the south common market in which Brazil is as representative. Therefore, the gradually advancement is US's tactics of implementing FTAA's plan. So American and Chile, the 5 countries of the Central America and Dominica, Peru, Colombia and Panama achieved the free trade agreements.Chapter seven discussed the relationship between the global free trade agreements and china's FTA strategy. At present, there are 20 countries that signed free trade agreement with US. The South Africa Customs Union, Thailand, Malaysia and United Arab Emirates are negotiating free trade agreements with US. Because US's free trade agreements net is gradually expanding, the American global strategy of free trade agreements has negative influence global multilateral trade system. This problem is gradually prominent and makes more countries focus on region economic integration and neglect the global multilateral trade system. On October 4, 2006. European Commission suggested that the European external trade policy should transfer from the multilateral trade negotiations to new bilateral or regional free trade agreements negotiations. The essence of this strategic change is to implement the FTA. In this context, we face with this choice of regional economic integration. The multilateral trade system is still first choice for China to integrate into the world economy. It is necessary for china to implement its FTA. The main points of China's FTA strategy should be as follows: firstly, the balance of various interests is the key to establish bilateral FTA. Secondly, formulating to establish FTA's sequence for different members should obey following strategic thinking and constantly pushing forward. Thirdly, China should recognize the important of FTA from the strategic perspective and never let the department or group interests to distract the negotiation process.