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Abstract
The North American Free Trade Agreement (NAFTA) is a comprehensive agreement that came into effect on January 1, 1994, creating the world’s largest free trade area. Among its main objectives is the liberalization of trade between Canada, Mexico and the United States, stimulate economic growth and give the NAFTA countries equal access to each other’s markets. NAFTA will soon grow to include eight more countries: Argentina, Brazil, Chile, Colombia, Paraguay, Peru, Uruguay, and Venezuela. ...
NAFTA has also increased intellectual property rights and allowed companies to obtain patents in Mexico and Canada. ...
Before NAFTA was established, investing in Mexico was a difficult process. ... Under NAFTA, investors no longer need government approval to invest and are treated as domestic investors. ...
According to Encarta Online Encyclopedia (2003) NAFTA forms the world’s largest free trade zone, bringing together 365 million consumers in Canada, Mexico, and the United States in an open market. ...
According to the preamble of the NAFTA agreement, NAFTAs’ objectives are trying to:
· To strengthen bonds of friendship and cooperation
· Act as a catalyst to international cooperation
· To create, expand, and secure future markets
· To establish fair rules of trade
· To ensure a predictable framework for business planning
· To enhance firms competitiveness in foreign markets
· To foster creativity and innovation
· To create new employment opportunities
· To promote development
· To strengthen environmental regulations
(Slusarz, 1995)
Benefits
A benefit of NAFTA is foreign trade. ... The work of NAFTA has also served to benefit Mexicos economy; in accordance with the United States economy, Mexicos exports have increased, more than doubling since 1993. NAFTA has enabled Volkswagen, IBM, and the textile industry to seek labor and materials in Mexico. NAFTA has also allowed IBM to create plants in Guadalajara that would otherwise have been built in Asia. ...
Free trade under NAFTA has also encouraged international specialization, the production of only the goods that a particular economy can produce most efficiently. ... (Ball 111)
In Canada, the agriculture and agri-food industry has increasingly benefited from NAFTA. ... In comparison, Canadian exports of agricultural products to non-NAFTA countries grew by 45 percent during the same period (NAFTA Benefits, 2003)
Other benefits to NAFTA include:
· A trade increase of $127 billion between the U. ...
(Lambro, 1)
Weaknesses
With all the good effects of NAFTA unfortunately there are some negative ones as well.
Approximate Word count = 1889
Approximate Pages = 7.6
(250 words per page double spaced)
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