The North American Free Trade Agreement. One Of The Major

1307 WordsApr 19, 20176 Pages
The North American Free Trade Agreement One of the major keys to having two or more parties successfully trade and invest with each other is the ability to make agreements peacefully and come to similar terms. Many times, people would like to trade goods and services, but cannot agree on the terms each other have made. This can obviously cause many problems with trading and is the reason many deals do not go through, which can impact not only the people involved, but many more people very negatively. This is why agreements are so important in today’s world, and the North American Free Trade Agreement is no exception. What is the North American Free Trade agreement, also known as NAFTA? The definition, according to naftanow.org, is a…show more content…
marketplace, and a market that is driven more by supply and demand. NAFTA has many components. Some of these include tariff elimination for qualifying products, Elimination of nontariff barriers by the year 2008, tariff reduction for motor vehicles and auto parts, expanded telecommunications trade, reduced textile and clothing barriers, more free trade in agriculture, Mexican import licenses should be gotten rid of, expanded trade in financial services, opening of insurance markets, increased investment opportunities, liberalized regulation of land transportation, and many more according to inc.com/encyclopedia. All these components help make trading between the U.S., Canada, and Mexico simpler and more efficient. The Trade Agreement has provided North America with many benefits. One of them is NAFTA quadrupled trade. According to Kimberly Amadeo, “from 1993-2015, trade between the three members quadrupled, from $297 billion to $1.14 trillion. That boosted economic growth, profits, and jobs for all three countries. It also lowered prices for consumers.” The trade pushed this all to happen because it eliminated the tariffs and made it easier for the North American countries to come together and trade. NAFTA also helps the three countries by lowering the prices on exported goods. The United States imported 144 billion dollars of oil which is
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