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MIOP reseach about: NAFTA Tradeing - Research Paper Example

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In the year 1994, 1, of January, a fresh approach to trade amongst the countries of North America took effect. With the United States congress’ aid, President Bill Clinton enabled the formation of a contract between Canada, the United States of America, Mexico and North American Countries…
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Download file to see previous pages That contract, also known as NAFTA (North American Free Trade Agreement) was designed with numerous economic outcomes in mind (International Monetary Fund 74). The expectations were that not only would make the trade more abundant, cheaper and easier for all the countries that were involved, but economic growth and wealth would follow. NAFTA’s support was split among most of the citizens of that country. One side saw the proposal having potential for a significant economic success, in every country involved. The other announcing that the plan would prove to be detrimentally terrible to the employment of the United States. After coming into effect nearly six years, questions still arose if NAFTA was in the best interest of the United States, and its expectations in the future (Carbaugh 273).
Since free trade was implicated between the three North American countries in 1994, the effects of that agreement are now just becoming apparent in both long and short term. There was little doubt as to how Mexico and Canada would benefit from NAFTA. What was to be seen yet was the impact it had on United States’ previous concerns. Most agreements of trade are meant for eliminating tariffs between countries, except NAFTA. Market access such as tariffs being faced out over 15-years and the policies of origin were covered. The law of origin says that commodities and services must come from one of countries in the North American to obtain access to the dropped tariffs. Services, trade rules, the taking away the restrictions of investment and the protection of intellectual property like trademarks, copyrights and patents, are covered with NAFTA. Finally, a settlement process of an argument was set up, which in problem solving between the countries before serious problems are caused, were critical (Carbaugh 282). NAFTA also owned significant provisions entrenched into the accord to gratify the strongly narrow-minded environmentalists and labor unions. Bill Clinton, Former President put into operation two side- agreements, The (NAALC) North American Agreement on Labor Cooperation and The (NAAEC) North American Agreement on Environmental Cooperation. Many were concerned about the possible rise of unemployment in Canada and America and because of Mexico's apathetic regulations on environmental and labor issues (United States International Trade Commission 3). The NAAEC aim was setting environmental systems to assist in the environment’s improvement and development. The NAALC’s goal was to advance the collaboration of other organizations and trade unions to improve living standards and working conditions (International Monetary Fund 83). Positives Like any other agreement, compromise, or decision there are negatives and positives NAFTA was not excused as its matters flash heated debates. The greatest advantage of NAFTA was blatant; investment and trade have increased drastically since the agreement implementation. In fact, America was the supreme benefactor of trade, among the countries hitting high records. Mexico and Canada are the numbers one and two importers of America supplies and services. In addition, they are numbers one and four on America’s largest export record. The trade between America and Canada were astounding; it was the leading flow of services and goods in the planet, (over one billion dollars) a day, in goods that cross the boundary, mostly from automobile and agricultural products (Carbaugh 286). Thousands of Mexican jobs, as well as Canadian and American, were established because of the increase in goods exported by every country. There was a positive correlation between the rise of exports, and the addition of jobs as one moves up, the other ...Download file to see next pagesRead More
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