North American Free Trade Agreement (NAFTA)

1275 Words3 Pages
bulb-icon

Recommended: The north atlantic free trade agreement

About NAFTA The North American Free Trade Agreement (NAFTA) is a trade agreement that sets the rules of trade and investment between Canada, the United States, and Mexico. Since the agreement entered into force on January 1, 1994, NAFTA become a state-of-the-art market-opening agreement, came into force and knew as a most tariff and non-tariff barriers to free trade and investment between the three NAFTA countries. In 1994, the North American Free Trade Agreement (NAFTA) is the world’s largest free trade zones and laying the foundations for good economic growth up and rising prosperity for Canada, the United States, and Mexico. Since then, NAFTA has demonstrated how free trade increases wealth and competitiveness, delivering real benefits …show more content…

Since it came into effect 15 years ago, North Americans have enjoyed an overall extended period of strong economic growth and rising advanced. This is because NAFTA has helped to stimulate economic growth and create higher-paying jobs across North America. It has also opened up the way for greater market competition and making more choice for purchasing power in North American such as consumers, families, farmers, and businesses. Furthermore, NAFTA has provided North American advanced in materials, technologies, investment capital, and talent available across North America. This has increasing the businesses in the three countries more competitive and also countries all around the world. With rapidly growing economies in Asia and South America challenging North America’s competitiveness, NAFTA remains sustained growth and prosperity in the region. NAFTA has proven that trade liberalization is very important in promoting transparency, economic growth, and legal certainty, with the increased global competition, Canada, the United States, and Mexico will work to strengthen the competitiveness of the North American region by continuing to pursue trade within the NAFTA region. The three countries will also continue to expand trade with other …show more content…

 Supervises the implementation and further elaboration of the Agreement and helps resolve disputes arising from its interpretation.
 Oversees the work of the NAFTA committees, working groups, and other subsidiary bodies.
NAFTA Coordinators
 Senior trade department officials designated by each country.
 Responsible for the day-to-day management of NAFTA implementation.
NAFTA Working Groups and Committees
 Over 30 working groups and committees have been established to facilitate trade and investment and to ensure the effective implementation and administration of NAFTA.
 Key areas of work include trade in goods, rules of origin, customs, agricultural trade and subsidies, standards, government procurement, investment and services, cross-border movement of business people, and alternative dispute resolution.

NAFTA Secretariat
 Made up of a “national section” from each member country.
 Maintains a court-like registry relating to panel, committee, and tribunal proceedings.
 Maintains a tri-national website containing up-to-date information on past and current

Show More
Related

  • Essay On Trans Canada Highway

    1083 Words  | 3 Pages

    ... the American economy for trade rather than their own country. The shift to a national highway in Canada supported trade and the economy in giving motorists the ability to travel through Canada without having to leave like which had to be done in previous years.

    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

  • The Canada-U.S. Trade and Economic Relationship

    1583 Words  | 4 Pages

    The Canada-U.S. trade relationship is not static. Political and business strategies and practices change on both sides of the border, and events occur – such as "mad cow disease" – that are beyond almost everyone's control.

    Read More

  • Canada 's Global Financial Crisis

    1104 Words  | 3 Pages

    ...munity. Although Canada is dependent on trade with the United States, NAFTA proves that the relationship goes both ways. Canada proved its worth in the global financial crisis, showing that it can practice good policy despite the dependence.

    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

  • United States Trade Policy: Current and Future Role in a Global Economy

    2527 Words  | 6 Pages

    The United States free trade agenda includes policies that seek to eliminate all restrictions and quotas on trade. The advantages of free trade can be seen through domestic markets and the growth of the world economy. T...

    Read More

  • Negative Effects Of NAFTA

    1300 Words  | 3 Pages

    The first source is demonstrating the effect of the NAFTA which stands for North American Free Trade Agreement. The NAFTA is a political agreement between Canada, USA and Mexico, and the purpose of this agreement is to improve trading relations by decreasing trade barriers, by removing tariffs. The first source shows an image of a political cartoon. In this image there is a man with a sad expression on his face in front of a US factory, with a sign on the building saying “Labor Day: This year’s picnic will be held in Mexico, where your job went”. What the source is demonstrating is one of the negative effects of the NAFTA, which is job loss for Americans. The source shows this through symbolism and labelling: The sad man represents American

    Read More

  • Canada Is Becoming Too Americanized

    933 Words  | 2 Pages

    It should be a great thing for the economies of both countries, but since the North American Free Trade Agreement was signed, American businesses almost took over the Canadian economy. When the American companies started to make more business in Canada, it brought more jobs and money to the country in the short-term. But as a long-term effect Canadians became even more depended on the U.S. as the American companies started dominating Canadian companies in Canada. Also, today Canadian manufacturers have little protection from the government when ch... ... middle of paper ... ...

    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

  • Advantages And Disadvantages Of Nafta In Canada

    534 Words  | 2 Pages

    With trading through U.S and Mexico, Canada has been greatly growing the economy. Companies in Canada can import products which are cheaper and more reasonable to sell to Canadian consumers, so that they are able to make more money than they manufacture the products themselves. Moreover, NAFTA has created jobs. When people think about NAFTA has created a lot of jobs in variety industries, they always think that only people who are living in the country will get benefits of that. Nevertheless, it is not. Also, companies have a benefits of creating jobs by NAFTA because creating jobs means that a company has more opportunities to manufacture products by increased employees and

    Read More

  • Regional Trade Agreement

    2292 Words  | 5 Pages

    ...e USA and Canada is high and was not considered when the Agreement was made. This is the reason, many American citizens feel that there numerous illegal settlers in their country, trade deficits instead of over pluses and loss of lakhs of jobs, as before. The relations within this bloc are complex and tight; Canada and Mexico are controlled by the USA, declining their trade freedom. All this does not set up a solid base for businesses and trade.

    Read More

  • Why Is Free Trade Important

    990 Words  | 2 Pages

    Free trade also would increase peace between the developed countries such as China, Russia, and Europe. This would increase productivity and wealth due to money not having to be spent on war and fighting with other nations. As participants in the world’s most productive, innovative economy, the great majority of people in the United States benefit from the expansion of free trade. U.S. leaders must base the country’s trade policy on promoting the overall health of the U.S. economy,not on helping special interests. U.S. leadership in championing free trade is essential to maintaining the United States’ broader international role as a force for democracy and the rule of

    Read More

  • The Benefits of Free Trade

    1275 Words  | 3 Pages

    Free trade in today’s economy allows so much more than just jobs and goods at lower prices for Americans. Compared to the foreign competition, the free trade benefits outweigh any risks the foreign competition might impose on the US. As said by Denise Froning in her article, free trade benefits in four ways. “Free trade promotes innovation and competition, Free trade generates economic growth, Free trade disseminates democratic values, and Free trade fosters economic freedom.” Societies that enact free trade policies create their own economic enthusiasm, nurturing freedom, job opportunities, and success that benefit every citizen. Free trade is the only type of fair trade because it offers consumers the most choices and best standards to improving their type of living. Also by fostering opportunitie...

    Read More

  • The Importance Of International Organizations

    1224 Words  | 3 Pages

    International organizations create space for its members to coordinate interests and actions which helps promote interdependent relationships among them and strengthens their legitimacy. As society has progressed, it has globalized, and in the past 50 years states have had to address their growing dependence, especially in the economic sector. The World Trade Organization (WTO), is an institution which has an immense impact on the international political economy and the way states function within the international system. It organizes agreements and treaties which govern how its members decide policies, tariffs, and keeps states accountable for their actions. For example, the General Agreement on Tariffs and Trade (GATT), determines how states can regulate their import and exports. (Hurd 2014,

    Read More

More about North American Free Trade Agreement (NAFTA)

Open Document