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Analysis Nafta

Autor:   •  April 2, 2011  •  Case Study  •  1,435 Words (6 Pages)  •  2,695 Views

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Focus of this paper is to analyze what has NAFTA done for the consumers and producers in Canada, USA, and Mexico. Who has NAFTA benefitted or hurt? The industries in which countries has taken advantage of NAFTA. What does it mean for exporter and importers in the future? What kind of results has NAFTA produced? What can be done to gain maximum benefit from NAFTA, and some of the strategies that can be taken to mitigate risks involved with it? How it has changed International business practices. What other nations are doing that is similar to NAFTA and how are they handling with the issues that come with having such an organization. All the protest and opposition NAFTA has seen in the past, and what does it really for US government and consumers. What can be done to improve the NAFTA contract and improve working conditions? Amendments that can be made to NAFTA

Keywords: International trade between US, Canada, and Mexico. Lower Cost. Low wage. Safety work conditions. Tariffs, Trade Barriers, free trade, US jobs.

NAFTA's Effect on US Businesses

The North American Free Trade Agreement (NAFTA) was signed into law by President Bill Clinton. According to Clinton, he hoped the agreement would persuade other countries to work toward a broader world-trade pact.

NAFTA, a trade agreement between the United States, Canada, and Mexico, eliminated practically all tariffs and trade restrictions between the three countries. The passage of NAFTA was one of Clinton's first major triumphs as the first Democratic president in 12 years- although the movement for free trade in North America had started as a Republican initiative. During its development, NAFTA was closely criticized by Reform Party presidential candidate Ross Perot, who disagreed with it, and stated that if NAFTA was passed, Americans would hear a "giant sucking sound" of American companies fleeing the United States for Mexico, where employees would work for less pay and without benefits. The agreement was signed in 1992 by US President George Bush, Canadian Prime Minister Brian Mulroney and Mexican President Salinas. However it was not signed into law until December 8, 1993 by President Bill Clinton. It was swiftly enforced on January 1, 1994, creating the world's largest free-trade zone in terms of GDP linking 44 million people producing $17 trillion worth of goods and services. (Johnson 2001)

U.S. goods and services trade with NAFTA totaled $1.1 trillion in 2008. Exports totaled $482 billion; Imports totaled $596 billion. The U.S. goods and services trade deficit with NAFTA was $114 billion in 2008. The NAFTA countries (Canada and Mexico), were the top two purchasers of U.S. exports in 2009. (Canada $204.7 billion and Mexico $129.0 billion) The top export categories (2-digit HS) in 2009 were: Machinery ($52.0


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