1994 involved three parties, the U.S., Canada and Mexico and was signed by.
the respective governments. This pact brought together these three counties.
forming the largest trade bloc in the world in terms of combined GDP. The.
trade agreement was formed with the goal of eliminating barriers that.
hindered trade and investment between the three countries. NAFTA resulted.
to the immediate elimination of tariffs for over a half of Mexican exports.
to the United States and more than 30% of U.S. exports to Mexico. The.
treaty required that within 10 years from the date of implementation, all.
tariffs between the two countries would be eliminated except those.
concerning some agricultural exports, which were to be slowly phased-off.
within 15 years. At the time of implementation of the treaty almost all the.
trade between the United States and Canada was free from duty. NAFTA also.
sought to eliminate other trade barriers not related to tariffs as well as.
to offer protection to the intellectual property rights of the products.
involved in the trade (Reinert and Scorza, 1996).
The agreement opened opportunities for free trade between the three.
countries by enforcing uniform tariffs on various products as an.
implementation of equal trading terms between the countries. However, there.
have been many critics on agreement; based effects on the countries. Most.
critics have cast Mexico as the most adversely affected by the agreement.
considering that it was the weaker of the three parties in terms of trade.
and economic development; as such economists in Mexico, U.S.A, Canada as.
well as the World Bank and other big bodies have criticized the assertion.
that there is equality between the three partners and majority of them.
reaffirm the fact that Mexico loses more than it benefits from the.
agreement although the other two parties also suffer from minor loses.
Irrespective of the sharply divided opinion on the agreement, NAFTA was.
reached as what was thought to be a solution to some of the most pressing.