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The Creation Of NAFTA - Online Term Paper

The Creation Of NAFTA

NAFTA, or the North American Free Trade Agreement is a trade agreement that was created in 1994. The purpose of this agreement is to provide free trade for the North American countries of Mexico, Canada, and the United States. Its goal is to eliminate all trade barriers and restrictions that exist between these three countries within the next fifteen years.
There are three things that are used in order for NAFTA to accomplish its goal of providing free trade. They are a customs union, a common market, and a free trade area. First, a customs union is a type of economic integration in which member nations establish a free trade area, and impose a uniform tariff structure for trade with ...

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involved. Trade has become much easier and has increased tremendously between these countries. For example, after NAFTA’s first year in existance, trade between the United States and Mexico increased by over sixteen billion dollars. Also, several American franchises such as McDonalds and others have moved into Mexico and Canada. NAFTA has also made it easier for small privately ownedbusinesses in these neighboring countries. Before NAFTA was created, it would of taken a long amount of time for companies to enter these countries. Trade between the United States and Canada has also increased significantly. Canada is the leading trade partner of the United States as they buy over one hundred billion dollars worth of American products each ...

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PAPER DETAILS

Added: 6/23/2007 09:03:39 PM
Category: Economics
Type: Premium Paper
Words: 321
Pages: 2

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