cturers in the United States would go bankrupt. Many states can produce textiles at lower costs then the US, and for this reason, American policy makers refused to come to an agreement on the trade of textiles. They realized that if they were to allow the free trade of textiles, it would be detrimental to a large portion of the American economy. What our politicians failed to realize is that these losses are only short-term. Over time, workers would be retrained and new jobs would arise. Nonetheless, strong opposition still existed, and no agreement was made. Thus, without resolution, the member states developed a new organization that was a manifest extension of the GATT. At the Uruguay Round in 1994, the member states of the GATT established the World Trade Organization. The WTO is governed by the rules of the GATT, however, the decisions it makes are binding, and member states are required to abide by its resolutions. Since its beginnings, the WTO has overseen international trade and has stimulated freer international trade across the globe. In addition, the establishment of the WTO has led to the formation of various other free trade areas across the globe. However, there are many people and politicians who are opposed to free trade and its implications. The North American Free Trade Agreement is a non-customs free trade association between the United States, Canada, and Mexico. NAFTA allows for goods to be traded freely between its member states with only minimal tariffs and restrictions. However, many feel that this is not in the best interest of our nation. For example, last year President Clinton requested fast track authority to negotiate an expansion of NAFTA. Congress refused Clinton's request, and without a definitive vote on his treaty, he could not further n...
