NAFTA Or The North American Free Trade Agreement

312 Words1 Page
bulb-icon

Recommended: Positive and negative consequences of nafta

NAFTA, or the North American Free Trade Agreement is a regional economic alliance started by President Reagan in the late 1980s, and established in 1994 under President Bill Clinton. NAFTA created a trade zone allowing the free flow of goods between the member countries of the United States, Mexico, and Canada (Schermerhorn & Bachrach, 2015). Goals of NAFTA were identified in Article 102 to include increased regional trade and investment, increase employment and improve working conditions and living standards in each country, framework for the conduct of trilateral trade relations and for the management of disputes, strengthen and enforce environmental laws and basic workers’ rights, and work together to promote “further trilateral, regional,

Show More
Related

  • Zapatista Movement in Mexcio

    1284 Words  | 3 Pages

    "North American Free Trade Agreement (NAFTA)." Encyclopædia Britannica. Encyclopædia Britannica Online. Encyclopædia Britannica Inc., 2011. Web. 23 Nov. 2011. .

    Read More

  • U.S-Mexico Borderlands

    1084 Words  | 3 Pages

    After three years of debate NAFTA was established in 1994. Fears concerning NAFTA included job creation, loss and transfer, wages and infrastructure. (Ganster/Lorey 188-189) However, with the implementation of NAFTA the economy grew. Ganster and Lorey reveal that bilateral trade increased by $211.4 per year from 1989 to 2004. Commerce grew by 20 percent in the first six months of 1994. There were advantages and disadvantages of NAFTA, nevertheless, NAFTA “intensified the integration of the two economies rather than distancing them.” (Ganster/Lorey 190)

    Read More

  • NAFTA in Marketing

    1074 Words  | 3 Pages

    The main goal of NAFTA agreement was to eliminate trade barriers and open the door for investment among the member countries - the U.S., Canada, and Mexico. The differences between the economies of three countries presented the big space for benefiting from the agreement. Thus, Mexico took advantage of improving economic situation in the country and reducing the poverty rate by creating more workplaces. The U.S. and Canada got an access to enter Mexican market and hence the opportunity to align export and import procedures with the country. North American Free Trade Agreement (NAFTA) allowed Mexico to speed up the economy development process in the country. Due to the increase of the investment into industrial and services sectors of the country, the unemployment rate was reduced, and the overall level of GDP increased. NAFTA allowed exporting the goods from America and Canada to Mexico with the tariffs and trade barriers eliminated. The Mexico got an access to enter the U.S. market, which represents 80% of Mexican export. However, NAFTA has both advantages and disadvantages. Still, there are some disagreements between the countries regarding the free

    Read More

  • Who Did NAFTA Benefit the Most?

    934 Words  | 2 Pages

    After a lengthy negotiation of over 3 years, Canada, the United States, and Mexico reached an agreement on trilateral trade ― the North American Free Trade Agreement (Scaliger). Commonly referred to as NAFTA, it came into effect on the first day of 1994. Covering 450 million people and reaching $17 trillion in combined GDP, NAFTA proudly ranks the first among the world’s free trade agreements (USTR). It is usually seen as a remarkable success for the countless benefits it brings to the member countries. The goal of NAFTA was to promote closer trade relationships, eliminate trade barriers, and increase market opportunities among all three countries in the agreement. However, the United States has indeed benefited the most from NAFTA economically through expansion of American culture and access to natural and human resources.

    Read More

  • The Pros And Cons Of NAFTA

    1027 Words  | 3 Pages

    On January 1st, 1994, a treaty that created the largest free trade area were signed into place by the trilateral of United States, Canada, and Mexico. NAFTA is a promise made by world’s most significant corporations claiming to create many high paying jobs and raise the standard of living in the US, Canada and Mexico. As we approach its 21st birthday, NAFTA now links 450 million people producing trillion dollars’ worth of goods and services each year. However, behind this seemingly good deal, it also created many underlying issues. Beginning with NAFTA giving corporation opportunities to move factories aboard to the lower-cost Mexico. Manufacturing aboard did not only outsourced American jobs, it also caused manufacturers that remained to lower

    Read More

  • NAFTA: The North American Free Trade Agreement

    1078 Words  | 3 Pages

    Throughout history, the United States has initiated policies, peace agreements, or laws which were believed to bring prosperity, and success, however those policies as a result were created in the U.S. best self-interest. One of these policies is known as NAFTA, which was a trade agreement created to open up free trade around the globe, however this policy backfired, deeply scaring and deteriorating the Latin American economy, and its people. Specifically, NAFTA known as the North American Free Trade Agreement, took effect on January 1, 1994 was a treaty which entered by the United States, Canada, and Mexico used to eliminate tariff barriers, in order to encourage economic prosperity between these three countries. A quarter century later, the

    Read More

  • Essay On NAFTA

    624 Words  | 2 Pages

    The goal of NAFTA was to systematically eliminate most tariff and non-tariff barriers to trade and investment between the countries. NAFTA has allowed U.S., Mexico, and Canada to import and export to other at a lower cost, which has increased the profit of goods and services annually. Because the increase in the trade marketplace, NAFTA reduces inflation, creates agreements on intern...

    Read More

  • European Union and the North American Free Trade

    2910 Words  | 6 Pages

    Over the course of sixty years, the European Union (EU) has evolved to become one of the most economically and politically integrated regions in the world. Compare and contrast the EU with one other major global trading bloc, such as NAFTA or ASEAN, with which you are familiar.

    Read More

  • The Success of the North American Free Trade Agreement (NAFTA)

    2274 Words  | 5 Pages

    The Success of the North American Free Trade Agreement (NAFTA). On January 1, 1994, a new approach to trade amongst North American countries took effect. With the aid of the United States Congress, President Bill Clinton was able to form a contract between the North American Countries of Canada, Mexico, and the United States of America. This contract, known as the North American Free Trade Agreement (or Nafta for short), was designed with many economic outcomes in mind.

    Read More

  • NAFTA

    987 Words  | 2 Pages

    The North American Free Trade Agreement (NAFTA) took effect January 1, 1994. It is a trade agreement between all three of countries of North America, which are The United States, Canada, and Mexico. The Canadian Prime Minister, Brian Mulroney, the Mexican President, Carlos Salinas de Gortari, and former U.S. President George H. Bush spearheaded the agreement. Relationships between the countries were already on good terms, especially between The United States and Canada. Five years before NAFTA went into effect they signed the Canada-U.S. Free Trade Agreement that eliminated all tariffs. It was only time before a more integrated agreement was put into effect for all of North America. The geographic location and the already established trade of goods and services made NAFTA a logical decision.

    Read More

  • Negative Effects Of NAFTA

    1300 Words  | 3 Pages

    The NAFTA is involved in this phenomenon because since the agreement involves Mexico it in turn creates job opportunities for the Mexicans and on top of that Mexican workers are part of an underdeveloped country which in turn means they are going to get less money due to the condition of their economy. And for American businessmen that is a very desirable quality in a potential employee due to how much profit the companies and factories will make simply by giving more low paying jobs to Mexicans and decreasing the American workforce. This source relates to economic globalization, because the NAFTA is essentially an economic agreement between major countries to save money and reduce trading taxes. This agreement causes an economic rise in all of these countries by causing an increase in jobs in Mexico and increasing companies’ profits in the US and

    Read More

  • NAFTA Ratification

    369 Words  | 1 Pages

    The idea and policy implementation of economic integration in North America was never a new one at the time of NAFTA’s ratification. Dating back over one-hundred years ago during the Presidency of William Howard Taft, President Taft had signed into law a reciprocal trade agreement with then Canadian Prime Minister Sire Wilfred Laurier. Free Trade at the time was a polarizing issue in Canada and the deal was stifled after Canadians voted Sir Wilfred out of office. Fifty years later during the Lyndon Johnson Administration, the United States and Canada had jointly signed into law the U.S.-Canada Automotive Products Agreement that liberalized trade in cars, trucks, tires and other crucial automotive parts between the two neighboring countries

    Read More

  • Globalization: The European Union, the ASEAN Group, and NAFTA

    3413 Words  | 7 Pages

    Globalization has become one of the most influential forces in the twentieth century. International integration of world views, products, trade and ideas has caused a variety of states to blur the lines of their borders and be open to an international perspective. The merger of the Europeans Union, the ASEAN group in the Pacific and NAFTA in North America is reflective of the notion of globalized trade. The North American Free Trade Agreement was the largest free trade zone in the world at its conception and set an example for the future of liberalized trade. The North American Free Trade Agreement is coming into it's twentieth anniversary on January 1st, 2014. 1 NAFTA not only sought to enhance the trade of goods and services across the borders of Canada, US and Mexico but it fostered shared interest in investment, transportation, communication, border relations, as well as environmental and labour issues. The North American Free Trade Agreement was groundbreaking because it included Mexico in the arrangement.2 Mexico was a much poorer, culturally different and protective country in comparison to the likes of Canada and the United States. Many members of the U.S Congress were against the agreement because they did not want to enter into an agreement with a country that had an authoritarian regime, human rights violations and a flawed electoral system.3 Both Canadians and Americans alike, feared that Mexico's lower wages and lax human rights laws would generate massive job losses in their respected economies. Issues of sovereignty came into play throughout discussions of the North American Free Trade Agreement in Canada. Many found issue with the fact that bureaucrats and politicians from alien countries would be making deci...

    Read More

  • Public Policy of Globalization in Canada

    2264 Words  | 5 Pages

    The paradigm shift from domestic to foreign policies succeeded from the paradigm shift in ideologies. This led to international changes where states no longer managed national economic systems (McBride, 2005, p. 8). As trade and investment spheres grew rapidly, Canadian Prime Minister Brian Mulroney agreed to start negotiating free trade agreements. In 1989 the Canada-US Free Trade Agreement (FTA) came into effect. By 1994 the North American Free Trade Agreement (NAFTA) was implemented but it was originally signed in 1993.

    Read More

  • Disadvantages Of NAFTA In Canada

    903 Words  | 2 Pages

    The North American Free Trade Agreement (NAFTA), is an agreement signed by Canada, Mexico, and United States which advocates free trade. If successful, the agreement promised to make the whole North American continent an economic zone. This was the agreement if the world’s largest free trade relationship. It was then passed in 1944 and brought many benefits to three countries, epically Canada. When NAFTA initiated it set out for free trade to North America but Canada Benefitted greatly. Frist being NAFTA made cheaper prices and variety of products for products for consumers. NAFTA also has had an effect on employment and wages. Finally, NAFTA has helped to benefit in Canadas economy. Canada has benefitted greatly with the initiation of NAFTA.

    Read More

More about NAFTA Or The North American Free Trade Agreement

Open Document