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  • The pros and cons of NAFTA and Its Effects on the US, Canada and Mexico

     

    Essays2 Economics

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ID number:463742
Evaluation:
Published: 11.12.2002.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

The North American Free Trade Agreement (NAFTA) is a very significant part of international trading in North America. NAFTA was built upon a prior 1989 trade agreement between the U.S. and Canada that was responsible for tariff reductions between the nations. There were concerns of U.S. jobs being lost in the transfer of factories to foreign nations, where U.S. companies could take advantage of cheap labor and the lack of workers' rights. Also, environmental groups became concerned that enforcing pollution laws would be difficult in foreign countries with loose environment laws.
It was specifically designed to improve trading conditions between the North American countries. The treaty was put into effect January 1, 1994 and eliminated tariffs on many internationals goods. It would phase out other tariffs over a two decade period (Mayer 15). The agreement called for immediate removal of one half of U.S. exports to Mexico.
Along with NAFTA, the North American Agreement on Environmental Cooperation (NAAEC) was formed to prevent environmental destruction and to enforce the laws by which businesses are held. …

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