Multilateral and free trade agreements create benefits by increasing the import and export of goods. Countries are not the same in their production capacities. Access to raw materials, the necessary level of technological development and the training of the workforce all have an influence on the development of a product or service. Free trade agreements offer countries the opportunity to focus on what they do best while being able to buy goods and services at potentially the lowest price. Free trade allows countries rich in certain natural resources (such as oil) to trade them with the world at a fair price while importing goods traded from other countries that are scarce in their own countries, such as .B products. By opening the doors for other countries to compete fairly, without tariffs or binding trade policies, it is believed that increasing free trade is a deterrent to monopolistic activities. Like all trade agreements, Mercosur has its problems. Some believe it was set up to consolidate the status quo of underdeveloped and rich countries, making it difficult for the poor to rise up and really take advantage of any of the agreement`s offers. Others say that the extreme class divisions in the geographical area caused by Mercosur can only gain wealth, even if this happens only through a trickle-down system. An internal market is a kind of trading bloc in which most trade barriers (for goods) have been removed The World Trade Organization allows trading blocs as long as they lead to less protection from third countries than before the creation of the trading bloc The development of a regional trading bloc should promote the development of others. This can lead to trade disputes such as those between the EU and NAFTA, including the recent dispute between Boeing (US) and Airbus (EU). The EU and the US have a long history of trade disputes, including the dispute over US steel tariffs, which were declared illegal by the WTO in 2005.
In addition, there are the so-called beef wars, in which the US imposes £60 million in tariffs on EU beef in response to the EU`s ban on hormone-treated US beef; and complaints to the WTO about the generous agricultural support of both sides. .
