North American Free Trade Agreement - Essay Example

It is important to highlight that the formation of this trade union has had a lot of positive impacts on the three economies. Just to mention, the relationship among the three-member states has been very good as they feel to be attached due to the association. Another good impact of the association is that the rate of exchange in the various commercial transactions is relatively favorable among the three states as opposed to when a country that is not a member of the union involves herself in the commercial transactions by making a purchase of any kind (Tamara, 2011).

This was through the removal of the tariffs or the taxes that were charged on various business people who took part in the importation and exportation of commodities from any of the three states. It consequently aimed at raising the wages and salaries f the employees slightly in the countries which were quite successful. This also led to the increment of job opportunities in the countries (Tamara, 2011).

However, despite all these moves that have been moved by the union, there are challenges that have been realized. One major failure that has hit the union is on the infrastructural development in Mexico through factories. The poor location is a big challenge as there is a strong and stiff completion that is posed by the workers from Asia (Tamara, 2011).