Nafta and the Mexican Trucking Industry

Only available on StudyMode
  • Download(s) : 334
  • Published : February 12, 2013
Open Document
Text Preview
NAFTA and the Mexican Trucking Industry

NAFTA was officially sign in December of 1993 and went into effect at the beginning of 1994. The agreement included the three largest nations in North America, the United States, Canada, and Mexico. Originally thought of by Ronald Reagan in the early 1980s he proposed for a common market in North America, where many of the neighboring countries did the majority of their trading. Negotiations originally started in 1986 and an original agreement was signed in 1992 by United States President George H. W. Bush, Mexican President Carlos Salinas, and Canadian Prime Minister Brian Mulroney leading the talks for a trilateral trade bloc between the countries. After the signing each countries legislatures ratified the bill and it was officially signed in 1993, a year after Bush left office, by Bill Clinton. The agreement stated that tariffs would be originally reduced with the goal of eliminating tariffs on most goods, Canadian dairy products the exception, over the span of 10 years some goods 15 years. Due to the various concerns and dangers of eliminating the barriers for trade the three countries had to pass two separate parts of the bill for labor laws, the North American Agreement on Labor Cooperation (NAALC), and for environmental laws, the North American Agreement on Environment Cooperation (NAAEC).

Under NAFTA trade increased, investment between the three countries has gone up making North America the largest market in the world. By lowering tariffs involved in importing and exporting goods NAFTA made it easier and cheaper to do business between countries and generated millions of dollars for the countries involved. Canada and Mexico became the top buyers of US exports and are the second and third largest suppliers of imports to the United States. Although NAFTA increased trade there were consequences for signing NAFTA. People in all three countries involved protested to the signing of the bill. Farmers in Mexico...
tracking img