North American Free Trade Agreement (NAFTA)

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NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) Brief Overview: NAFTA, The North American Free Trade Agreement, came into existence on January 1, 1994. NAFTA is essentially a free-trade agreement between the 3 North American nations of the Unites States, Canada, and Mexico. The major thought behind this treaty was to give the citizens and the companies of the North American nations many incentives to trade between themselves. The duties on U.S goods exported to Mexico were slashed by fifty percent, and other restrictions were to be detached from a lot of categories, such as motor vehicles, computers, automotive parts, and agricultural goods. NAFTA was also put into action so to safeguard the intellectual property rights of the companies, such as patents, copyrights, and trademarks. Other supporting agreements were also inked in later years, which allowed for worker and environmental protection. Although a lot of people might be of the opinion that the NAFTA is like the EU (European Union), it is rather quite dissimilar. NAFTA, unlike EU, doesn’t set up a group of supranational governmental bodies, nor does it make any law that is higher than the national law of each of the member countries. Impact of NAFTA over the years: The signing of the NAFTA was a controversial issue, even before it came into existence. Many people still debate whether this was a good move and many have contemplated on the treaty’s effects on human rights, the environment, as well as the culture of the three countries a. Impact on the United States Economy Perhaps the only sector of the United States economy that seems to be influenced the most by the NAFTA happens to be the labor union. Almost all of the labor unions in the United States have opposed NAFT... ... middle of paper ... ...e over the member countries since the signing of NAFTA, and this has been due to the large number of outside variables that crop up in this lavish environment of our global economy. As we near the NAFTA’s twentieth year, thoughts of the pros and cons that have been attributed to NAFTA can help United States leaders understand how to best move toward trading relationships, not just with Mexico and Canada, but with all foreign countries. References: 1. http://www.economiaysociedad.com/dollarization.htm 2. http://www.yaleeconomicreview.com/spring2005/nafta.php 3. http://www.cato.org/dailys/01-08-04.html 4. http://www.invesetopedia.com 5. http://www.dfait-maeci.gc.ca/nafta-alena/menu-en.asp 6. http://users.erols.com/kurrency/basicsup.htm 7. http://www.frbsf.org/econrsrch/wklyltr/wklyltr99/el99-29.html 8. http://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement
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