The North American Free Trade Agreement

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and Mexican President Carlos Salinas de Gurtari met to discuss the
possibility of revising current trade policies. The thing that set the NAFTA
apart from other trade agreements historically was that it was to be the first
trade agreement entered into between two industrial countries and a developing
country. By much of the world the NAFTA is often viewed upon as North America's
answer to the European trading bloc. Many provisions of the NAFTA take their
roots in the Canada-U.S. Free Trade Agreement which became operational January 1,
1989. A target objective was to create free trade between the United States,
Mexico, and Canada rather than a comprehensive economic union such as that of
the European Community. Whereas the EC dealt with monetary exchange rate issues
by implementing a standard in currency called the "Euro-Currency", the NAFTA
would be off limits to such control. Like many issues today, this topic was
hotly debated. Many people vehemently argued that job loss ...

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NAFTA also
eliminates things such as the costly need to convert drivers as merchandise
rolls over the borders of a neighboring country.
What all of this could do for the United States is quite clear. The most
important objective is to improve the efficiency and productivity of the member
countries to more effectively compete against foreign suppliers at home and
abroad. The NAFTA imparts an export-led growth strategy to help solve the United
States' account deficits. The premise behind the whole thing is quite simple.
Once our nation experiences the expected increase in productivity, which in turn
forces prices down, exports would ultimately increase. NAFTA will undoubtedly
contribute to ...

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