The North American Free Trade Agreement Aimed To Ultimately Establish The

Tuesday 13th April 2021 01.54 Published by

On January 1, 1994, the day NAFTA officially came into force, a group of Indian peasants, commanded by Sub-Commander Marcos, embarked on an armed rebellion. This has been shocking not only to Mexican leaders, but also to the international community. The unrest in Chiapas is due to the long-standing economic and social injustice in the region and the isolation and exploitation of Indians by the local oligarchy of landowners and mestizo (cacic) patrons. While NAFTA has made significant progress in advancing the goals of free trade, global businesses are often forced to address local economic, political and social realities within a country. The North American Free Trade Agreement created the world`s largest free trade area, covering the United States, Canada and Mexico. In 2017, member states generated about $22.2 trillion in gross domestic product. The OBJECTIVE of NAFTA was to remove barriers to trade and investment between the United States, Canada and Mexico. The implementation of NAFTA on January 1, 1994 resulted in the immediate removal of tariffs on more than half of Mexican exports to the United States and more than one-third of U.S. exports to Mexico.

Within 10 years of the implementation of the agreement, all U.S.-Mexico tariffs should be eliminated, with the exception of some U.S. agricultural exports to Mexico, which are expected to expire within 15 years. [29] Most of the trade between the United States and Canada was already duty-free. NAFTA also aimed to remove non-tariff barriers and protect intellectual property rights on marketed products. Much of the debate among political experts has focused on how to mitigate the negative effects of agreements such as NAFTA, including whether workers who lose their jobs are compensated or whether they are offering retraining programs to help them move into new sectors. Experts say programs such as U.S. Trade Adjustment Assistance (AAT), which helps workers pay for education or training to find new jobs, could help rebuke anger over trade liberalization. Mexico stood out the best from NAFTA because of the dramatic increase in trade.

Maquiladoras in Mexico recorded an annual increase of 15% in income. Overall, Canadians have supported NAFTA and exports to the region have increased since its implementation. “Trilateral trade has almost tripled since NAFTA came into force in 1994. It reached a trillion dollars in 2008. Foreign Affairs and International Trade Canada, “Fast Facts: North American Free Trade Agreement,” December 15, 2009, called December 30, 2010 According to a study published in the Journal of International Economics, NAFTA reduced U.S. manufacturing pollution: “On average, nearly two-thirds of U.S. manufacturing reductions in coarse particulate matter (PM10) and sulphur dioxide (SO2) between 1994 and 1998 can be attributed to trade liberalization to NAFTA.” [100] In addition to increasing consumer choice over the past 20 years, nafta has increased trade between the three countries 3.5-fold compared to 1994, according to a 2013 Associated Press report.

The Clinton administration negotiated an environmental agreement with Canada and Mexico, the North American Environmental Cooperation Agreement (NAAEC), which led to the creation of the Commission for Environmental Cooperation (CEC) in 1994.

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