Case 316 - It's Not Just the Economy, Stupid: Linking Free Trade and the War on Terror

Auerswald, David and Caroline Shaver Between 2000 and 2004, the U.S. government pursued a series of bilateral free trade agreements with Australia, Chile, New Zealand, and Singapore. Some of these countries eventually concluded an FTA with the United States, while others did not. This case study considers two explanations of U.S. behavior toward these countries. The first focuses on purely economic concerns: Was a free trade agreement in the economic interests of the United States as a whole, and/or of major U.S. industries and sectors of the economy? The second focuses on the use of trade to leverage or reward broad security cooperation with the United States, particularly after the 9/11 attacks and during the buildup to the Iraq War. The study then reviews the outcome of each set of negotiations in terms of which framework it better fits into. The narrative is divided into three parts. The first discusses the rationales, for free trade as well as the procedural steps required for a