Nafta And The United States ' Free Trade Agreement

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“NAFTA was bold and controversial from the start. When first conceived, it was far from obvious that it would be possible given the circumstances of the times,” Michael J. Boskin The North America Free Trade Agreement (NAFTA) was enacted in 1994 by United States, Canada, and Mexico. NAFTA is the predecessor to the Canada-US Free Trade Agreement (CUSFTA) and was used to facilitate the creation of the North American Agreement on Environmental Cooperation (NAAEC). It was also used to facilitate the creation of the North American Agreement on Labour Cooperation (NAALC). This agreement between Canada, United States, and Mexico, created the first tri-lateral rule based trading system in North America. The signing of NAFTA has generated modest benefits for Canada. Since the signing of the NAFTA there have been varying conclusions and results as to the benefits and effects NAFTA have brought to Canada. There have also been concerns pertaining to if the goals of NAFTA have been met. At the time concerns were voiced regarding the differences in the countries level of economic development, wages and relative factor endowments. Critics argued that, given the differences in each variable for each country, trade liberalization would have a significant distributional effect within each country. This would end up creating winner and losers in the agreement. In this paper I will assess the benefits NAFTA have brought to Canada. To assess the benefits that have been derived from NAFTA
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