The Pro's and Con's of NAFTA Essay

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Introduction 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.…show more content…
This form of regional economic integration allows each country to separately determine their external trade policies with non-member countries, making it the least integrated form of trade agreements.
The features of the NAFTA include the abolition of tariffs on 99% of traded goods between the United States, Canada, and Mexico, removal of barriers on cross-boarder service flow, protection of intellectual property rights, removal of restrictions on foreign direct investment, application of national environmental standards, and two commissions with the responsibility to impose fines and remove trade privileges (Hill, 2011). The two commissions focused on environmental and labor issues among trading partners. The agreements support “cooperative efforts to reconcile policies, and procedures for dispute resolution between the member states (NAFTA, 2011).
Specifically, the NAFTA consists of agricultural provisions set forth in the United States—Canada Free Trade Agreement, established in 1989, along with various new provisions such as sanitary measures to protect living organisms from the risks of food additives, and a united effort to eliminate export subsidies worldwide (North American Free Trade Agreement, 2011). The NAFTA has eliminated trade barriers that are often highly regulated, such as barriers in the service sectors. The agreement requires the government of each trading partner to publicize all regulations,

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