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istricts and the central districts of the USA were particularly opposed to this implementation, owing to the fact that they formed the bulk of the manufacturing zone in the country, and thus feared the loss of jobs and manufacturing business to either Mexico or Canada (Glick, 198). On the other hand, the southern states and part of the northern states, especially those on the borders were supportive of the implementation of the NAFTA trade pact.
Thus, the vote on the North American Free Trade Agreement was an almost evenly divisive issue for Democrats senators during the vote in 1993, where 27 democrat senators voted for the NAFTA implementation, while 28 of the Democrat senators voted against its implementation (Earle, 193). The most notable occurrence however, is that both the Democrat senators from the State of Massachusetts voted for the implementation of the NAFTA trade agreement, despite the issue being highly divisive. In this respect, the question becomes; what informed the Yes vote for State of Massachusetts senators and what uniqueness does the NAFTA pact present for the state that would make the two senators and some members of the congress from the state vote in unison to have the trade pact implemented?
At the time of signing this agreement, President Clinton ratified it while still being opposed by 60% of his Democrat counterparts in the legislature, meaning that he got more support from the Republicans than the Democrats, which is a highly unusual scenario (Rosenbaum, n.p.). This simply serves to indicate two major points. First, it indicates the fact that there was no prior agreement between the Democrats caucus in the house on the way the vote should go. Secondly, this scenario indicates that the vote did not go in the way of loyalty to the president or to the party, but on purely partisan interests, most of which were regional (Kollman, 146).
The State of Massachusetts vote on NAFTA fulfills the predictions of Gravity model of trade, which
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Chomo (2006) found that the Qualifying Industrial Zones (QIZs) which was established in 1996 allowed manufactured products from Israel, Egypt, and Jordan to enter the U.S. duty free. Jordan is a developing nation and has a small market due to its small population.
The purpose for countries entering into this agreement can be political, economic, or social, etc. The association of states is based on their geographical location. There are many effects for members of these organizations. Some encounter advantages, while others take their chances, and end up having negative consequences.
Under t NAFTA, various non-tariff barriers to agricultural trade were eliminated between the United States and Mexico. Besides, various tariffs were eliminated immediately, with others being phased out within the period of 5 to 15 years. This paved way for an orderly adjustment to free trade with Mexico following the inception of NAFTA in the beginning of January 1, 2008.
Rules of origin are implemented within a free trade area to prevent re exportation to other countries. A free trade area is formed by free trade agreements. It reduces trade barriers and ensures easy exchange of goods. It is believed that a free trade area increases income and wealth.
("The Columbia Electronic Encyclopedia," n.d.)
With these in mind, there are various reasons that justify my full support for the implementation of the NAFTA. First, it entails the removal of as many tariffs and duties as possible ("Investopedia," 2005).
This paper focuses on the benefits derived from and downside of the NAFTA for economic participants in the US.
The positive effect of NAFTA can be illustrated citing the bilateral agricultural trade between the US and Mexico for select products. For instance, the US is able to substitute the production of corn and nut at the exchange ratio of .
However, Free Trade has been a general recognition of the era. This investigative paper finds the facts and assesses the validity of the newest economic emergence.
INTRODUCTION: The word Free Trade implies an unrestricted business opportunities across the globe.
Hence, the concept of trade blocs was put forth to border a region free of such discriminations. The idea is actually conceived to be a success in burying every possibility of a nation indulging in such activities. The present paper assesses this very
I am particular concerned with the potential implications of the FTA for the automobile and other manufacturing industries. I am aware FTA is a bilateral agreement that reduces the tariffs for the purpose of promoting trade between two countries, however,
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