The North American Free Trade Agreement Definition

The passage of NAFTA has removed or removed barriers to trade and investment between the United States, Canada and Mexico. The impact of the agreement on issues such as employment, the environment and economic growth has been the subject of political controversy. Most economic analyses have shown that NAFTA has been beneficial to North American economies and the average citizen,[5][6] but has been detrimental to a small minority of workers in sectors subject to trade competition. [7] [8] Economists have estimated that the withdrawal from NAFTA or the renegotiation of NAFTA, in a way that would have created restored trade barriers, would have affected the U.S. economy and cost jobs. [9] [10] [11] However, Mexico would have been much more affected, both in the short term and in the long term, by the loss of jobs and the reduction of economic growth. In 1990, Carlos Salinas, then Mexican president, began talks with the United States to join the North American Free Trade Area. That is why Reagan`s successor, President George Bush, began negotiations in 1991 for a North American trade agreement that would bring together the United States, Mexico and Canada. Maquiladoras (Mexican assembly plants that absorb imported components and produce goods for export) have become the emblem of trade in Mexico. They left the United States for Mexico, hence the debate about the loss of American jobs. Revenues in the maquiladora sector had increased by 15.5% since nafta in 1994. [68] Other sectors have also benefited from the free trade agreement and the share of non-cross-border exports to the United States has increased over the past five years [when?], while the share of exports from border states has declined.

This has led to rapid growth in non-cross-border metropolitan areas such as Toluca, Leén and Puebla, all more populated than Tijuana, Ciudad Juérez and Reynosa. The idea of creating the North American Free Trade Area was first proposed in 1980 by U.S. President Ronald Reagan as part of his presidential campaign. President Reagan`s proposal was inspired by the success of the European Economic CommunityEurozoneAll the countries of the European Union that have adopted the euro as their national currency form a geographical and economic region known as the eurozone. The euro area is one of the largest economic regions in the world. Eighteen of Europe`s 28 countries use the euro, which has boosted trade between its member states. 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, with the exception of some Mexican U.S. states, should be eliminated.