The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994 and by 2010 it was recognized as the biggest trade bloc in the world.
Members
The United States, Canada, and Mexico
Objectives
NAFTA is designed to promote free trade throughout North America, and also at the same time regulate goods to make the three countries safer, healthier, and more efficient. The free trade makes goods available quicker and opens up plenty of opportunities for all three countries. NAFTA makes getting certain products that cannot be grown or made in some parts of America easier by allowing them to be transported freely.
Structure
Increases trade by eliminating tariffs, promotes industry growth, especially in Mexico, and creates environmental protection standards among three of the most industrial and powerful countries in the world.
Membership Advantages/ Disadvantages
Advantages- no tariffs, increase economically, and industrially, also helps Canada and Mexico gain benefits from the United States and make them stronger as there are only three members that are subject to these special trading rules.
Disadvantages- Many American jobs are being moved to Mexico, where labor is cheaper, which is angering a lot of Americans, the cheap labor is good as it brings in money, but it is keeping many Americans unemployed.
Effect on Local Diversity
NAFTA raised the demand for factory workers and lowered the demand for local farmers, as their products were not needed anymore. This caused many people to get jobs at a large factory and abandon what they had done for most of their lives.
History
The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994 and by 2010 it was recognized as the biggest trade bloc in the world.
Members
The United States, Canada, and Mexico
Objectives
NAFTA is designed to promote free trade throughout North America, and also at the same time regulate goods to make the three countries safer, healthier, and more efficient. The free trade makes goods available quicker and opens up plenty of opportunities for all three countries. NAFTA makes getting certain products that cannot be grown or made in some parts of America easier by allowing them to be transported freely.
Structure
Increases trade by eliminating tariffs, promotes industry growth, especially in Mexico, and creates environmental protection standards among three of the most industrial and powerful countries in the world.
Membership Advantages/ Disadvantages
Advantages- no tariffs, increase economically, and industrially, also helps Canada and Mexico gain benefits from the United States and make them stronger as there are only three members that are subject to these special trading rules.
Disadvantages- Many American jobs are being moved to Mexico, where labor is cheaper, which is angering a lot of Americans, the cheap labor is good as it brings in money, but it is keeping many Americans unemployed.
Effect on Local Diversity
NAFTA raised the demand for factory workers and lowered the demand for local farmers, as their products were not needed anymore. This caused many people to get jobs at a large factory and abandon what they had done for most of their lives.