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The United States And Nafta

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The United States and NAFTA
Chelsea R. Corpening
University of Baltimore The North American Free Trade Agreement (NAFTA) was designed to create trade that was mutually beneficial for all North American countries. Yet a recent change in the U.S. administration has threatened continued trade between the three major players – the U.S, Canada and Mexico. New President Donald J. Trump’s promises to renegotiate NAFTA have both Canada and Mexico on edge, and without stability, can possibly force Mexico to opt out of the agreement altogether. While NAFTA has holes in its implementation, this agreement has aided in economic growth, tripled foreign investment, and lowered prices within the US.

History
NAFTA’s conception began November 13, 1979
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Congress need only approve or disapprove it.
Four years later, Reagan and then-Canadian Prime Minister Mulroney successfully negotiated the U.S.-Canada Free Trade Agreement – a precursor to NAFTA – that went into effect in 1989 (Amadeo, 2017).
By time President George H.W. Bush took the White House, Mexico had imposed tariffs on U.S. imports that were 250% higher than those the U.S. charged Mexico (Amadeo, 2017). Bush intended to negotiate a more liberal trade agreement with Mexico until Canada requested a trilateral agreement in 1991 (Amadeo, 2017). NAFTA’s framework was hammered out between the three countries and, two years later, they finalized the agreement. Congress passed NAFTA and President Bill Clinton signed it into law in November 1993. According to Article 102 of the agreement, under NAFTA, the three North American countries would mutually benefit under a “most-favored-nation” status. The agreements objectives are as follows: (a) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the Parties;
(b) promote conditions of fair competition in the free trade area;
(c) increase substantially investment opportunities in the territories of the Parties;
(d) provide adequate and effective protection and enforcement of intellectual property rights in each Party 's territory;
(e) create effective procedures for the implementation and application of this
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