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Free Trade Laws

Free trade is a government policy which does not apply tariffs to imports or subsidies to exports or quotas. Under a free trade policy supply and demand is the sole determinant of the allocation of resources. The free trade policy should permit trading partners’ mutual gains from trade of goods and services. Below are some of the most commonly asked questions about free trade answered by the Experts.

If a small business in California accepts an order for products from a company based in Texas, with offices in different states, and does not get paid, what could they do to get their payment?

Most generally a law suit, or even stating they are going to file a law suit, should do the trick. A Breach of Contract and Fraud would possibly be the proper law suit. Most businesses that pursue for payment should sue in their home state in order to make it harder for the defendant to defend themselves due to the travel needed. Usually a demand letter from an attorney will do the trick and most companies will go ahead and pay to avoid litigation. If not then sue in California, get a judgment, and then get an attorney to file a Petition to Register Foreign judgment, and then use an attorney for post-judgment proceeding to collect on the payment.

What are three pros and cons of the North American Free Trade Agreement (NAFTA) for the United States?

Typically the pros are as follows: NAFTA helps provide access to United State exports, they provide cheaper imports for consumers, and they help create jobs in poor countries, thus reducing illegal immigration and other poverty related problems. The cons can include: job loss for those whose jobs have moved to places where labor is cheaper, they also lead to a loss of tariff revenue for the government which causes increased taxes elsewhere, and the increased international trade helps illegal smuggling that could include drugs or terrorist weapons.

If a company that has several employees and has been under contract for many years and their contract canceled with the 30 day notice agreed upon. After that the cancelling company plans to hire all of the employees in order to do the accounting “in house”. Are there grounds for a lawsuit under Tortuous Interference in a case such as this?

In most cases like this the Free Trade rule comes into effect, and since the contract permits for cancellation with 30 days notice the company is abiding by that provision and exercising its business judgment to hire employees. Unless there is a non-compete agreement with the employees, they are free to work for whomever they like typically. Therefore a court would not likely find tortuous interference when a company is merely engaging in free trade; most generally a law suit would be ill advised.

If a couple had been separated for a long while but never had a Petition for Separation signed, and now the papers contain a free trade agreement that was never fully explained. Would this paper be valid after all this time?

In most cases unless the court has issued an order, then nothing unless signed by both parties can be deemed as any type of agreement in a legal separation.

What documentation would a U.S. citizen and their dog need to drive into Mexico and possibly stay indefinitely?

In most cases a U.S. citizen may enter Mexico with a Driver’s License and Birth Certificate or a U.S. Passport. As for their car, there is no special permit needed to drive across the border as long as it stays within the “Border Zone” or “Free Trade Zone” which extends approximately 25 miles into Mexico, and will remain in this part of Mexico for less than 72 hours. However if a person stays indefinitely, or will be beyond the Free Trade Zone, the government requires a special permit that may be obtained from the Mexican consulate or Mexican Immigration at the border. A temporary import permit for the vehicle will also be required. Failure to obtain the permits may result in the seizure of the vehicle, a fine, and jail time. As for the dog a person will need a health certificate issued by an official authority or a licensed veterinarian, and proof of vaccines against rabies and distemper, administered at least 15 days before the arrival of the dog in Mexico.

Free trade differs from other forms of trade policy where allocation of goods and services among trading countries are determined by price strategies that may be different from those that emerge under deregulation. Since the mid-20th century, nations have lifted restrictions on international trade; however other hindrances on trade include import quotas, taxes, and diverse means of subsidizing industries. The questions brought up here about Free Trade are just a small portion in the large body of questions that are ready to be answered by the Experts.
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