The Beginning of the Alliance
Portugal is an independent nation found in southwestern Europe. Most of its wealth came from the spice trade made by Portuguese navigators in the 15th and 16th centuries. Luxury items which came from India contributed a portion to the said wealth. Its economy relied upon agriculture and fishing. The prime commodities for export to other trading partners are sardines, cork and wine. Industrial development has been emphasized since the 1960s. One-third of the country's income comes from manufacturing. The said economy contributes to a large portion of the labor force. It concentrated on the metallurgical industry (remains small despite the efforts to enlarge it) as well as iron, steel, textiles and agricultural products. It also focused on production of armaments and general hardware. Farming, just like in other countries, plays a vital role in the trade relations of Portugal. Two-thirds of agricultural sources come from cereal crops with corn as the principal item. Major cash crops are grapes and olives while livestock includes pig, sheep, cattle, goats, mules and donkeys. Portugal is known to have a not so favorable balance of trade. The products imported by Portugal from other countries are petroleum, sugar, motor vehicles, cotton, wheat, oil seeds and iron and steel. Exported goods depend upon pulpwood, wines, cork, resin, turpentine and sardines. Bulk of Portugal's imports come from United Kingdom, Germany and the United States while its exports go to the United Kingdom. In the year 1986, Portugal formed part of the European Countries after several years of struggle and mediations. However, it also withdrew itself from the European Free Trade Association. The trade relations between US and Portugal started long before, most importantly during the Revolutionary War. The strong ties were brought about by the fact that Portuguese communities are found in some of the states of US specifically in Rhode Islands, Hawaii, Massachusetts, New Jersey and California. Major Imports and Exports between US and Portugal As the United States form part of the top three countries which Portugal exports products from, it is safe to say that the trade relations between these two countries contributed largely at least to both economies. Portugal is planning to expand on footwear and textiles to export to the United States in order to encourage more investment. The latter on the other hand continues to play a significant role in exporting goods to the former with pharmaceutical preparations and computers leading the way. The data per accumulation of the US Census bureau showed a seven-month total for the period ending July 2008 as follows: US Exports to Portugal - $1.57 billion and Us Imports from Portugal - $1.49 billion. For the year 2006, the following data were extracted as to the goods imported and exported between the two countries:
Trade agreements are considered binding in world trade and other international businesses. They are as important as any other contracts entered into by two nations. For Portugal and US, these agreements come in the form of economic programs which were very beneficial on the part of the former. Some of the important pacts that placed them together are:
Just like any relationships which are tested by a lot of circumstances, Portugal and US had their share of conflicts. This was mainly because they were importing and exporting products to and from each other and all guidelines set forth by their boundaries have to be followed. The following disparities were seen in the flow of trade between these two nations:
The impact of trade disparities may gravely affect two nations who are enhancing global trade. However, these concerns may be put to an end for the benefit of both parties. For US and Portugal, the above-mentioned disputes are part of the game. What is important is to strengthen the bond beyond these pressing situations. Come to think of it, a lot of nations rely upon the United States as their major trading partner. Needless to say, the effort to enhance the alliance is on top of anything else. This is not because Portugal wants to be independent from the EC but because it believes that US contributed a lot with its losses. They stood up because of the various programs shared by the US government, thus, it is better to stand by the friendship that have worked both ways. Others may be jealous of the camaraderie which binds these two countries together. Everything else may be put to stray if Portugal and US would be affected by these things. They are neither kids struggling for ownership of small toys nor adults fighting for personal issues. They are more of a responsible set of individuals who looks further to what they could bring to their successors. US-Portugal Trade References
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Portugal's major industries include tourism, textiles and footwear; wood pulp, paper, and cork; metalworking; oil refining;
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