Nafta ( North American Free Trade Agreement

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NAFTA (North American Free Trade Agreement) was formed in 1994 and created one of the world’s largest free trade zones which includes Mexico, United States and Canada. NAFTA is an example of a multilateral approach to free trade. The multilateral approach states that a country will bargain with its trading partners to remove trade restrictions while the other countries do the same. Another multilateral approach is GATT (General Agreement on Tariffs and Trade) which regulates international trade. GATT is comprised of representatives of all WTO member countries. The WTO (World Trade Organization) was established January 1, 1995 and is headquartered in Geneva Switzerland. As of November 2015 there were one hundred sixty-two countries that were members. The Uruguay Round was the most comprehensive international trade agreement and was finalized December 15, 1993. “Its Final Act prescribes, among other things, that tariffs on industrial products be reduced by an average of more than one-third, that trade in agricultural goods be progressively liberalized, and that a new body, the World Trade Organization, be established both to facilitate the implementation of multilateral trade agreements such as the Final Act and to serve as a forum for future negotiations.” (Fieleke, 1995) The Doha Round is the latest round of negotiations that began November 2001. Its aim was to lower trade barriers, revise trade rules and to promote trade in developing countries. ( Both the
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