Topics: International trade, North American Free Trade Agreement, Free trade area Pages: 9 (2673 words) Published: December 24, 2012
Impact of regional integration in Nafta on member states
Objectives of Nafta
Positives and negative aspects of NAFTA
Impact of Regional Integration (NAFTA) on the U.S.
Impact on United States Businesses:
Impact of the Regional integration on Canada
Impact on Canadian businesses.
Impact of Regional Integration(Nafta) on Mexico
Impact on Mexican Businesses

In today’s globalised economies, most of the countries in the World are part of a regional bloc, which can be in form of bilateral, multilateral, or by direct association. There are agreements between several countries , between (such as the North American Free Trade Agreement(NAFTA) or regional organization(such as the European Union). NAFTA is the largest trading bloc in the world with a total population of Population (July 2008 est.)444.1 million and with a combined GDP of 17 trillion $(CIA,2010).The three countries which form this alignment are United States, Canada and Mexico. The most important aspect covered in this agreement was the fact that involves two countries which have their economies highly developed (The US and Canada) and a developing country (Mexico). As a result this has led to an impressive increase in flows of trade and finance within the NAFTA partners and to make a contribution which will translate into one of the most powerful economically integrated regions in the world. In the 1980s The United States adopted a dual focus: Multilateral agreements and arrangements of business relations preferences .As a result of was created, a free trade treaty was established between the US and Canada, which was superseded by North Atlantic Free Trade Area(NAFTA).

In 1990 Mexico and the U.S. decide to start negotiating a comprehensive free trade agreement, this year Canada demonstrates its interest to be part of this treaty, thus starting jobs with the aim of creating a free trade area in North America. Between 1991 and 1992 meetings were held ministerial talks between the heads of government of the three countries. (,2010). In 1993 the Agreement was approved by the Assemblies of Canada, Mexico and the United States. The first of January 1994 NAFTA was established.

NAFTA (North American Free Trade Agreement) arises when the governments of the United States of Mexico ( Mexico ),Canada and the United States of America (USA), determined to reinforce the special ties of and cooperation between their nations signed a free trade treaty, which had as main objectives to promote trade and flows of investment between the three countries, by gradually eliminating taxes paid on products to their entry to another country; the establishment of rules that must be respected by the producers of the three countries, and mechanisms for resolving disputes that may arise. On the 1st of January 1994 took effect this Free Trade Agreement which brought many benefits to the involving countries. In order words by signing the agreement these countries establish a set of rules agree to sell and buy products and services in North America. It is called "free trade zone," and that

because the rules that have defined how and when trade barriers are removed to ensure free access of goods and services between the three nations involved, that is, how and when, quotas and licenses, and particularly rates and tariffs and is also enforce the rights of intellectual property rights.

In addition, NAFTA contains dispute settlement procedures and provisions regarding government procurement, intellectual property and rules of origin regulations (Blomstrom & Kokko 1997).
Impact of regional integration in Nafta on member states
According to (Sir Arthur,2007), Regional Integration it refers to the process of unification of countries into a larger group, he describes it as an ongoing process that leads a nation state disposition to be part of a regional bloc.

NAFTA is based on principles of transparency...
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