The North American Free Trade Agreement (NAFTA) is intended to promote free trade among the countries of North America by removing trade barriers, tariffs, quotas, and other such barriers. The agreement is quite extensive and includes many provisions related to such things as plant inspection and even wages. The agreement was negotiated among Mexico, the United States, and Canada, and as it was being considered, it was much discussed in terms of what it would mean for the United States and whether on balance it could be considered a positive or negative move for the U.S.
The same questions were raised with reference to Mexico and to the benefits that might accrue to Mexico, and the emphasis on Mexico was related to the perception of economic need in that country and the effect the Mexican economy has on the U.S. NAFTA can be seen as part of a new effort at globalization as trade barriers are removed and more and more companies become multinational in orientation. Issues between Mexico and the rest of the world should also be seen in terms of third world development and the special need of countries like Mexico for ways to spur internal growth. Now that NAFTA has been in place for some two years, many see it as time to assess the changes that have been made and to decide whether, on balance, NAFTA has been positive or negative for the U.S. economy.
The tripartite free trade agreement between the U.S., Canada and Mexico is known as the North American Free Trade Agreement (NAFTA). The provisions of NAFTA addresses tariffs and benefits to U.S. consumers, producers and workers. Rules of origin ensures that only North American goods benefit from tax shelters. NAFTA disposes of investment barriers for each of the member countries and mandates equal opportunities to enable businesses to be competitive. Opposition to NAFTA, however, was based on fears that the treaty would cost the country a lot of jobs and that environmental ...