Nafta Final Part - NAFTA The North American Free Trade Agreement 1310403 Independent University Bangladesh Section 02 Course Code INB 301 Name Gazi Md

Nafta Final Part - NAFTA The North American Free Trade...

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NAFTA The North American Free Trade Agreement 1310403
Independent University, Bangladesh Section: 02 Course Code: INB 301 Name ID Gazi Md. Sahadate Hossaine 1310403 Mohammed Iqbal Hossain 1110422 S.M.Ahsan Habib 1310593 Mohammad Hasanul Banna 1220586 Kazi Md.Tanvir 1310468 Syed Amir Hamza 1331001 Tania Nazreen 1321175 Submitted to Date of Submission Ms. Sumita Das December 02, 2015 Senior Lecturer, School of Business Independent University, Bangladesh (IUB) 1 | P a g e Report on | NAFTA
2 | P a g e Report on | NAFTA
Introduction More than 20 years have passed since January 1, 1994, when the North American Free Trade Agreement (NAFTA) was first implemented. On that date, NAFTA’s member countries—Canada, Mexico, and the United States—started a 14-year process in which they gradually removed thousands of barriers to intraregional trade, including all agricultural products traded between Mexico and the United States and nearly all agricultural products traded between Canada and the United States and between Canada and Mexico. Canada and the United States already had started to implement bilateral trade liberalization in 1989 as part of the Canada-U.S. Free Trade Agreement (CUSTA), which was then subsumed by NAFTA, so the year 2014 may be thought of as both the 20 th anniversary of NAFTA and the 25 th anniversary of CUSTA.NAFTA has had a substantial impact on the integration of North America’s agricultural markets. Market integration is the extent to which one or more formerly separated markets have combined to form a single market. Integration is visible in increased cross-border flows of goods, services, capital, and labor. Trade in goods consists of not only final consumer products but also intermediate inputs and raw materials, as firms reorganize their activities around regional markets for both inputs and outputs, spurred in part by greater foreign direct investment (FDI).In addition, decision-makers in both the government and the private sector continue to pursue a course of greater institutional and policy cooperation and coordination to encourage further market integration. Integration of North America’s agricultural markets, as fostered by NAFTA, offers many tangible benefits. In general, it enables agricultural producers and consumers in the region to benefit more fully from their relative strengths and to respond more efficiently to changing economic conditions. For producers, it opens new territories for the sale of their output, possibly allowing for the further exploitation of economies of scale; however, it also opens the door to new competition from producers in locations that were formerly isolated by tariff and quota barriers. In addition, the creation of a larger, single market gives producers access to potentially cheaper suppliers of inputs and creates new opportunities for FDI, as firms restructure their vertical and horizontal arrangements.

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