The alternative is establishing a global free trade area in which freer trade is based on economic freedom. Such an association differs from the FTAA in that the qualifying conditions have to be met before a country can enter the association. Thus, the GFTA is a trade strategy that specifically rewards nations for their commitment to economic freedom. Under this strategy, if the best way to gain free access to U.S. and other developed markets is through economic liberalization, then protectionist countries driven by political interest have no choice but to open their markets. Every decision that protects political power at the expense of economic reform would set a country farther and farther away from signing prosperous trade agreements with the world's largest markets.
Protectionism is punished and liberalization rewarded.
Pursuing this strategy now will establish America as a leader in promoting free trade and economic liberalization in every region. The next two strategically important countries that should be offered agreements are Uruguay and Australia. By inviting them to join this expanded free trade association upon completion of those reforms, the United States will be sending a strong message to these regions that the commitment to liberalization has to be genuine, not just a bargaining tool. To conclude free trade agreements with Chile and Singapore is to show the United States' true commitment to advancing free trade, especially with nations that have demonstrated a proven commitment to open markets. These steps to establishing a Global Free Trade Association will initiate a broader new trade policy strategy that effectively encourages economic liberalization and strong democracies.