Free trade had existed between the U. NAFTA was created to eliminate tariff barriers to agricultural, manufacturing, and services; to remove investment restrictions; and to protect intellectual property rights. This was to be done while also addressing environmental and labor concerns although many observers charge that the three governments have been lax in ensuring environmental and labor safeguards since the agreement went into effect.
It is a treaty made between the United States, Canada and Mexico that went into effect on 1 January Although free trade existed between the US and Canada sincethis new treaty broadened the arrangement.
This agreement was created to eliminate tariff for qualifying products, which could make the prices of exported and imported products significantly high. As for Mexican products exported to the US, companies had to pay an average of percent.
Through this treaty, the imbalance in tariffs was addressed by completely phasing it out. In fact, 50 percent of the tariffs were immediately abolished as soon as the agreement was signed and took effect.
Among the areas that NAFTA specifically focused on include accounting, construction, advertising, consulting, architecture, management, healthcare, tourism, engineering and education.
Also, it abolishes licensing requirements and streamlines border processing. In other words, the North American Free Trade Agreement paved the way for businesses coming in and out of Mexico from and into the US to make their lives better.
It allows for the establishment of trade standards. One of the things that three countries agreed to improve was the health, safety and industrial standards to the highest existing standard. National standards no longer apply as a barrier to free trade. Additionally, agreements were made to ensure that industrialization will not increase pollution, as well as have provisions to manage labor and environmental issues.
It ensures protection of intellectual property rights. This will be especially helpful in fields like chemical production and computer software.
Additionally, companies will think twice about stealing intellectual property from other firms. Custom duties are also to be eliminated. It opens up new opportunities. NAFTA has opened up new opportunities for small-mid-size businesses to establish a name for themselves, whether in the US or in Mexico.
This means that smaller firms can finally build and maintain offices in Mexico. And with the abolishment of tariffs, it has now become less expensive for smaller entities to try their luck in the Latin-speaking nation.
It paves the way for real wage increases. According to a Washington Pose article, a study showed that after this treaty was signed, there was a significant increase in wages across the US by 0.
It increases trade between the US, Mexico and Canada. The North American agreement helped in significantly increasing trade among the three countries. It creates jobs for US workers. According to the US Chamber of Commerce, the increased trade brought about by the agreement has created 5 million jobs in America alone.
It can be a cause for excessive pollution. There had been several reports of excessive pollution in the past.The North American Free Trade Agreement was implemented in to encourage trade between the United States, Mexico and Canada.
When NAFTA removed trade tariffs, companies exported corn and other grains to Mexico below cost. Rural Mexican farmers could not compete. At the same time, Mexico reduced its subsidies to farmers from percent of total farm income in to percent in North American Free Trade Agreement (NAFTA) Related Terms: Globalization The North American Free Trade Agreement (NAFTA) is a treaty entered into by the United States, Canada, and Mexico; it went into effect on January 1, When NAFTA removed trade tariffs, companies exported corn and other grains to Mexico below cost.
Rural Mexican farmers could not compete. At the same time, Mexico reduced its subsidies to farmers from percent of total farm income in to percent in The second U.S. free trade agreement, signed in January with Canada, was superceded in by the complex and controversial North American Free Trade Agreement (NAFTA) with Canada and Mexico, signed with much fanfare by President Bill Clinton on September 14, MONTREAL - U.S.
Trade Rep. Robert Lighthizer said Monday talks to rewrite the North American Free Trade Agreement are progressing very slowly. He said the U.S. views NAFTA as a "very important Founded: Sep 18,