Research Paper - Page |1 Introduction After the Second...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
P a g e | 1 Introduction After the Second World War, the world has witnessed numerous regional and economic integrations that is the agreements to reduce and remove the barriers (non/tariff) to allow free flow of goods and services. These help a country to lower the cost of production of goods and services by producing commodities in which they are more efficient at absolute advantage. For example, GATT (General Agreements on Tariffs and Trade), OECD (Organization for Economic Cooperation and Development), UNCTAD (Unites Nations Conference on Trade and Development), EC (European Community), NAFTA (North American Free Trade Agreement), EFTA (European Free Trade Association), International Commodity Agreements, Central American Common Market (CAFTA), Association of Southeast Asian Nations (ASEAN), Asian Pacific Economic Cooperation (APEC) etc. and other 205 regional trade agreements are in force since 1948 (Adams 18). Among them I will be focusing more on NAFTA and EFTA and detail about their history. NAFTA NAFTA was implemented on January 1, 1994 (Barber 88). It is a regional integration that is intended to remove various tariff barriers between the three nations U.S., Canada and Mexico. It has created the world's largest free trade area, which now ties 444 million people producing over $17 trillion worth of goods and services (www.nafta.asp). The trade between the partners rose to 250% in 1993-2005 (Levine 8). The key provisions of NAFTA include the following (Martin 288): - Elimination of all tariffs on U.S., Mexican, and Canadian goods by 2008, - Expansion and development on procedures in the U.S.-Canada FTA and provision for standardized regulations,
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
P a g e | 2 - Elimination of import and export quotas, - Reaffirming GATT principles avoiding discrimination against imported goods, - Opening new procurement markets in Mexico, mainly the petrochemical, electrical, and pharmaceutical areas, - Eliminating immediately or phasing out tariffs on agricultural goods, textiles and apparels, autos, oil and gas field equipment, and coal. - Eliminating duties and non-tariff barriers on most of the Mexican imports of telecommunications equipment. Benefits of NAFTA There has been a small but significant improvement in the trade and economics of the partnering nations such as: Increase in trade Trade between the NAFTA participants tripled from $297 billion in 1993 to $903 billion in 2007. Specifically U.S. goods exports to Canada and Mexico grew 157% from $142 billion to $364.6 billion. On the other hand, exports from Canada and Mexico to the U.S. grew 231% from $151 billion to $501 billion. The exports from Canada to the rest of the world increased by 122% whereas exports from Mexico increased by 102% (Jones 7). Increase in export of US agricultural products
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/07/2010 for the course IBM 301 taught by Professor Sally during the Spring '08 term at A.T. Still University.

Page1 / 9

Research Paper - Page |1 Introduction After the Second...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online