North American Free Trade Agreement and Border

Topics: North American Free Trade Agreement, Mexico, United States Pages: 3 (1124 words) Published: October 8, 1999
The North American Free Trade Agreement or as its most commonly known NAFTA "is a comprehensive rules-based agreement between the United States, Canada, and Mexico", that came into effect on January 1,1994. All three countries signed it in December of 1992; later on November of 1993 it was ratified by the United States congress. NAFTA was not only used in cutting down on tariffs between both countries but it also help deal with issues such as Transportation, Border Issues, and Environmental Issues between these two countries. NAFTA changed some tariffs immediately and within fifteen years other tariffs will fall to zero. NAFTA was not created to just lower tariffs it was also created to open protected sectors in agriculture, energy, automotive trade, and most importantly textiles. It also opened up the U.S. Mexico border to previously restricted areas of trade. "It set rules on government procurement and intellectual property".

Now after it's fourth year of existence it is apparent that it is good for Mexico and the United States. Because of NAFTA Mexico has been able to make significant changes in their economy, far more than the U.S. "The Mexican overall trade balance went from a $18.5 billion deficit it 1994 to a $7 billion surplus in 1995". Even though American exports slipped $4 billion in 1995, the recovery of the Mexican economy in 1996, when the GDP grew 5.1%, American exports came round and grew to 20%, later to 35% thanks to NAFTA. Also because of NAFTA two way trade between the United States and Mexico has grown to 60% from 1993.

Although Mexico's economy is making its first boom in sixteen years, it is still "economically small compared to the U.S". Mexico's economy has been compared to that of the size of Florida. Because of this all the hype about the loss of jobs to the U.S., especially California, have been taken over the top. According to the most recent information it was proved that NAFTA has had almost no effect...
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