Essay about The Central American Free Trade Agreement

In 1994, the North American Free Trade Agreement (NAFTA) was enacted between two industrial countries and a yet still developing nation. This was an agreement that was the first of its kind due to the relationship that the countries had and the investment opportunities that it presented. The United States, Canada, and developing Mexico decided to work towards eliminating most tariffs and non-tariff barriers between the three in order to increase the flow of trade in goods and services. Since its enactment NAFTA has led to the providing of over 40 million more jobs throughout the countries, and it has also tripled merchandise trade between the three participants to an astounding $946 billion USD in 2008 (NAFTA Now). However even then it is still not very clear whether enacting NAFTA was worth the time and effort and in fact the United States may have been better off not having joined NAFTA.

The North American Free Trade Agreement, commonly known as the NAFTA, is a trade agreement between the United States, Canada and Mexico launched to enable North America to become more competitive in the global marketplace (Amadeo, 2011). The NAFTA is regarded as “one of the most successful trade agreements in history” for its impact on increases in agricultural trade and investment among the three contracting nations (North American Free Trade Agreement, 2011). Supporters and opponents of the NAFTA have argued the effects of the agreement on participating nations since its inception; yet, close examination proves that NAFTA has had a relatively positive impact on the economies of the United States, Canada, and Mexico.

When countries have needs but not the capacity to satisfy those demands they enter into trading through the exchange of surplus, produce to help their trading partners. Canada, Mexico, and the United States created a treaty to establish a relationship that can benefit everyone in this process known as NAFTA. This agreement has been criticized and has been blamed for hurting the US economy more than helping. Although speculations may be misguided, I do not know much about this agreement, and I must research multiple sources. This paper seeks to understand if NAFTA has produced significant benefits for Canada, Mexico, and the United States economies.

Free trade provides opportunity, it provides growth, and it provides struggling nations a chance. With free trade, markets open across national borders and the consumer ultimately benefits from higher quality goods at fair market prices. The producers of such goods now have larger markets to sell to allowing for the opportunity at increased sales, giving the consumer a greater variety of goods that can more individually meet specific demands. Free trade implementation to the United States foreign policy is a developing and revolutionary mindset that will bring prosperity to all parties involved. The United States will benefit from free trade because the market to purchase U.S. made goods and services will increase dramatically

It is obvious that such a continental thrust integration plan, both economically and politically, is substantially different from the original idea of fair and free trade in goods and services, through the abolition tariff and non-tariff barriers between the countries of the hemisphere. This idea first took shape with the free trade agreement of 1988 between Canada and the United States. Subsequently, in 1994, Canada had to accept that Mexico is joining the North American Free Trade Agreement, also forcing him to make substantial concessions on the application of the Investment Canada Act, which governs foreign takeovers of Canadian companies, in addition to ensuring the US privileged access to Canadian energy resources. All this should have been enough to open the US market to Canadian companies. It seems, however, that this is not the case. Large corporations and the US government want to use the pretext of fighting terrorism

The United States would face the negative consequence, as the US would suffer economic losses from a CETA due to trade diversion. Besides, the criticisms have been developed from some Canadian dairy farmers, as the agreement will weaken dairy supply management and increase corporate control over seed and environmental regulations. Similarly, another impact is it will affect the Canada’s local farmer. Since the European agricultural product like beef and pork are available in cheaper price, Canadian farmers will be forced to compete with generous European agricultural subsidies. Canadian farmers will gain little and loss

Trade is something crucial to economic success in any country. The less difficult trade between two nations is, the easier both can benefit as nations, but the individuals of the nation benefit as well as there is easy access to foreign products. Most notable for most people here in the U.S. is NAFTA, which is the agreement between Canada, Mexico, and the United States. However, there is a large division on whether or not free trade is more harmful than it is good, and that protectionism is the way to go. In fact, the current president-elect Donald Trump is for limiting free trade and installing large restrictions in the form of tariffs and outsourcing costs to protect America, and is part of his plan to "Make America Great Again." Free trade is a more intelligent decision as there are a lot more benefits of free trade compared to protectionism including individual benefits and economic improvement.

The mechanism that first comes to mind when you think of free trade is the exchange of goods from one country to another. Although this may be true, but the free trade agreement allows international trade without any restrictions. Some US citizens don’t support free trade, however, it does have its ups and downs. Households have benefited from free trade in many ways. I believe that US citizens could make the same products that any other country. On the up, side it’s noble to have a free trade agreement since the US can use the resources they have there to trade to a country with their needed resources.

Implementation of the North American Free Trade Agreement (NAFTA) began on January 1, 1994, and is one of the United States’ most significant regional trade agreements. The final provisions of the NAFTA were fully implemented on January 1, 2008. With full implementation, the last remaining trade restriction on a handful of agricultural commodities such as U.S. exports to Mexico of corn, dry edible beans, nonfat dry milk and high fructose corn syrup and Mexican exports to the United States of sugar and certain horticultural products are now removed. As you can see this agreement will have the potential to remove most barriers to agricultural trade and investment among the United States,

Since ancient times, societies have used forms of trade in order to benefit themselves and their communities. From bartering in Ancient Egypt, to the international trading the world has today, trading has found its way into various sectors of modern civilization. The idea of free trade dates back to sixteenth century Spain and it was believed by certain economists to be the reason why certain civilizations flourished more than others. Free trade was an idea The U.S., Canada and Mexico struck gold with when they implemented the North American Free Trade Agreement, better known as, “NAFTA”. The use of NAFTA is in America’s best interest because, it benefits U.S. jobs, improves trade relations, promoted specialization of trade.

Since the mid-20th century, countries have progressively reduced barriers, subsidies to domestic industries and diverse restrictions on international commerce in order to promote specialization and greater efficiency in production. In theory, free trade allows nations to focus on their main comparative advantages and profit from cooperation and voluntary trade. This strategy is usually reinforced by treaties between two or more countries where commerce of goods and services can be handled across their common borders, without tariffs and other trade obstacles. As a key component of regional integration in the Americas, CAFTA-DR is one important example of this economic ideology.

Free Trade is the concept we use when referring to selling of products between countries without tariffs, fees, or trade barriers. Free Trade simply is the absence of government interference or numerous restrictions, which has been labeled as laissez fair economics. Free Trade grants easier access to goods and services, promote faster growth for the economy, and also allows for the outsourcing of production of goods, which hurts the economy. Many believe that the free trade hurts developed countries and nations, due to the loss of jobs by international competition and can reduce the country’s GDP. Overall, free trade agreement with other countries can save time and money and increase participating countries economy.

Being the world 's largest economy, the United States is also largest exporter and importer of goods and services. American economic growth relies heavily on trade. According to a recent report on NAFTA, “Since 1992, nearly 20 million new jobs have been created in the U.S., in part due to the 1994 NAFTA agreement. Total trade between the NAFTA partners -- the U.S., Canada, and Mexico -- rose from $293 billion in 1993 to more than $475 billion in 1997, and has increased since. ” (Bowman, Free Trade). It is obvious evidence that international trade is beneficial to the US economy, at least in the 1990s.

Free trade cannot grow without the aid of governments to help promote and sustain it. Governments must support free trade by first modifying current trade policies to remove barriers against free trade. Lastly governments must act and enforce regulations to protect against unfair trade practices.

In 1994, the leaders of the thirty-four democratic countries of the Western Hemisphere launched the process of creating a Free Trade Area of the Americas (FTAA). The FTAA will be established by 2010 with the aim of gradually eradicating barriers to trade and investment in the region. The final characteristics of the FTAA will be determined through negotiations by government officials from the thirty-four participating countries. The trade issues that are presently under discussion are: market access; investment; services; government procurement; dispute settlement; agriculture; intellectual property; antidumping, subsidies and countervailing duties; and competition policy. Guiding principles for these negotiations