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The Benifits of Free Trade
That argument assumes that progress in multilateral trade talks will eventually occur.
Supporters of pursuing FTAs could argue that the EU has already negotiated a number of such agreements with various trading partners and that, consequently, refusal by the United States to negotiate such agreements would not stop any tendency that might exist toward the development of trading blocs. Instead, it only leaves the United States out of the opportunity to have more trade in its own bloc.
In summary, economic reasoning alone cannot determine whether FTAs are an advisable path to take to an eventual goal of multilateral free trade. Foreign policy and tactical considerations are also important. Multilateral free trade is the most desirable trade policy from the standpoint of overall U.S. economic productivity and efficiency. FTAs are similarly beneficial, but to a lesser degree, provided that they do not result in too much trade diversion (and, as noted earlier, trade diversion disappears as more countries are covered by such agreements).
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