What Was The Purpose Of The North American Free Trade Agreement

Proponents of NAFTA in the United States stressed that the pact was a free trade agreement and not an economic community agreement. [37] The free movement of goods, services and capital did not extend to work. By proposing what no comparable agreement had attempted to open up to a “great third world country”[38] – NAFTA avoided the establishment of a common social policy and employment. The regulation of the labour market and employment has remained exclusively due to national governments. [37] Two fundamental additions to NAFTA – the North American Labour Cooperation Agreement and the North American Agreement on Environmental Cooperation – have had a significant impact on the effectiveness of the agreement. “NAFTA is the worst trade deal ever signed somewhere, but certainly certainly ever signed in this country,” Trump said in 2016 during a debate with then-candidate Hillary Clinton. The OBJECTIVE of NAFTA was to remove barriers to trade and investment between the United States, Canada and Mexico. The implementation of NAFTA on January 1, 1994 resulted in the immediate removal of tariffs on more than half of Mexican exports to the United States and more than one-third of U.S. exports to Mexico. Within 10 years of the implementation of the agreement, all U.S.-Mexico tariffs should be eliminated, with the exception of some U.S. agricultural exports to Mexico, which are expected to expire within 15 years. [29] Most of the trade between the United States and Canada was already duty-free.

NAFTA also aimed to remove non-tariff barriers and protect intellectual property rights on marketed products. The agreement exists between Canada, the United States and Mexico. Examine these NAFTA facts to summarize their impact on these three economies since their adoption. After Mexico promoted a trilateral trade agreement in 1991, NAFTA was created as a way to open up free trade between the three North American superpowers and not just two. President H.W. Bush signed NAFTA in 1992, which was also signed by Canadian Prime Minister Brian Mulroney and Mexican President Salinas. According to a 2012 study on tariff reductions on NAFTA, trade with the United States and Mexico increased by only 11% in Canada, compared to a 41% increase in the United States and 118% in Mexico. [63]:3 In addition, the United States and Mexico benefited more from the rate reduction, with an increase in social benefits of 0.08% and 1.31%, with Canada recording a decrease of 0.06%. [63]:4 In accordance with NAFTA Article 102, there are 6 stated treaty objectives. After the election of President Trump in 2016, support for NAFTA was highly polarized between Republicans and Democrats. Donald Trump has expressed a negative view of NAFTA, calling it “the worst trade deal ever adopted in this country.” [159] Republican support for NAFTA has grown from 43% in 2008 to 34% in 2017.

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