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THE NORTH AMERICAN FREE TRADE AGREEMENT

THE NORTH AMERICAN FREE TRADE AGREEMENT: EFFECTS ON TRADE POLICY IN CANADA AND MEXICO

A farranging free trade agreement was negotiated between Canada and the United States in the mid to late1980s, and the CanadaUnited States Free Trade Agreement became effective on 1 January 1989.1 Early in 1990, the governments of both Mexico and the United States began to speak openly and favorably about the idea of free trade between the two countries.2 Almost immediately, the Canadian government indicated that any free trade agreement between Mexico and the United States would affect Canada and the CanadaUnited States Free Trade Agreement and thus Canada should participate in any free trade discussions between Mexico and the United States.3 Initially, the Bush Administration in the United States was publicly cool to the Canadian suggestion, indicating that it preferred bilateral agreements with its trading partners.4 In Canada, however, the CanadaUnited States Free Trade Agreement had never enjoyed overwhelming public support, and American insistence on freezing Canada out of free trade negotiations with Mexico threatened to create significant additional problems for both the beleaguered

Mulrooney Government and for the Free Trade Agreement, which is

1R. Cardinali, "Trade With Canada Under the FTA," Business, February 1989, 4952.

2L. Fenley, "A Vision of Interdependence," Business Mexico, March 1990, 7071.

3C. Allard, "Mexico for Sale: Gringos Welcome," Canadian Business, November 1990, 7276.

4R. Kuttner, "Managing US Economic Destiny," Challenge, January 1991, 1826. subject to unilateral cancellation by either party during the early years of its life. As a consequence, intense pressure on Washington by the Canadian government assured that Canada would be a party in the free trade negotiations with Mexico.

In 1992, negotiators from Canada, Mexico, and the United States finished work on the North Am...

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THE NORTH AMERICAN FREE TRADE AGREEMENT. (1969, December 31). In LotsofEssays.com. Retrieved 21:42, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1712243.html