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Policy Report - Research Paper Example

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North American Free Trade Agreement (NAFTA), a trade agreement between Canada, Mexico as well as United States that supports free trade among these three North American countries, was enforced in the year 1994. It is based upon the belief that eliminating the tariffs between the…
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Policy Report
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Download file to see previous pages The agreement was initiated in the year 1994 comprising of complex principles as well as lengthy documents. Altogether, the principles have been documented in eight sections, 22 chapters and nearly 2000 pages. It generally sets rules for international trade as well as investment between Canada, the United States as well as Mexico (USDA, 2004).
The major issues associated with NAFTA can be identified with reference to various occasions. For instance, since the agreement has been signed, a substantial deficit became gradually apparent between the three nations leading towards dislocation of resources. Furthermore, the manufacturing sector also had to witness a decline that endorsed numerous US jobs. Besides, it was observed that most of the US companies re-established their manufacturing units to Mexico at the cost of many US jobs. To mitigate such consequential effects, countries attempted to impose threat related to the re-establishment of businesses to squeeze concessions in wages and thus attain greater benefits (Office of United States Trade Representative, 2012).
There are numerous parties who have been involved in resolving the issues at NAFTA including the Mexican economy, multinational companies based on any of the three countries (i.e. Mexico, Canada and United States) and US Federal Government acting as a combined decision maker bloc of Canada and the United States of America. These three parties play a vital role in assisting United States at minimising the trade deficit which was initially observed in the international trade affairs between the allied nations. The other parties involved in this process include the US companies who must have the capability to compete on the world stage, socially conscious as well as responsible organisations that are sponsoring training programs (Office of United States Trade ...Download file to see next pagesRead More
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