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The Pros And Cons Of NAFTA

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While the abolishment of tariffs between the US and Canada is seen as one of main benefits granted by NAFTA, the FTA originally eliminated most barriers of trade between Canada and the US . NAFTA granted Canada access to the Mexican market and provided export opportunities for in financial and automobile sectors. While the US and Canada had planned for a thorough integration of the Mexican energy trade, they remained unable to break the monopoly of Mexico’s national oil company, Pemex (M. Angeles Villarreal & Ian F. Fergusson, 18). However, NAFTA nonetheless allowed for a greater access to the Mexican energy sector. In 2015, the US was the largest investor in Canada with a total stock of Foreign Direct Investment totalling 325.9 billion whereas …show more content…

The original aim of Chapter 11 was to guarantee a fair and equitable trade of goods between the NAFTA countries (Sinclair, 2). Chapter 11 involves process of investor-state arbitration which allows investors of a signatory country to bring to trial another government of NAFTA on the grounds that the state has breached the agreement (Sinclair, 3). Chapter 11 is a significant piece of legislation as it is allows individuals for private individuals to bring a suit against a foreign government. The party to bring suit does not require to be a government and rather must be an individual investor or company. The chapter allows investors to bring proceedings against a government in an international tribunal. Any breach on obligations outlined in Chapter 11 can warrant investors to bring a suit. Once the breach has been established, the tribunal determines whether the investor is entitled to monetary compensations. Obligations outlined in Chapter 11 include the guarantee that NAFTA investors cannot be given unfavourable treatment compared to domestic investors (Sinclair, 3). Chapter 11 also states that investors must be treated with respect in accordance with standards of international law (Sinclair, 3). The third main obligation of chapter 11 prevents NAFTA states from expropriating the investments of another NAFTA party without appropriate compensations (Sinclair,

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The North American Free Trade Agreement, otherwise known as NAFTA, is an international trade agreement between Canada, Mexico, and the United States, designed to remove tariff barriers between all three nations. Signed in the January of 1994 with final implications made in 2008. This has created substantial economic growth for Canada and its other two counterparts. NAFTA has increased trade for the Canadians, and as a result has created lots of jobs for Canada. Overall, NAFTA has been extremely beneficial for Canada since it was established in 1994.

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Along with the Confederation to begin the formation of Canada, the reciprocity debate of 1911 and NAFTA further impacted the development of Canada, because of its economic significance. The reciprocity debate of 1911 and NAFTA pronounced Canada economically through the flourishing of trade with other countries. The reciprocity agreement between Canada and the United States was instated to protect tariffs on goods traded between the two countries. Consequentially, the economy for Canada increased, with exports to the United States growing by 33%, post treaty.

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Shown in source 3 states “Title I of the act declared a “national emergency productive of widespread unemployment and disorganization of industry, which burdens interstate and foreign commerce, affects the public welfare, and undermines the standards of living of the American people.” To correct this situation, NIRA proposed to “remove obstructions to the free flow of interstate and foreign commerce. to eliminate unfair competitive practices. to increase the consumption of industrial and agricultural products by increasing purchasing power, to reduce and relieve unemployment and to improve standards of labor. ”(Source 3).

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NAFTA has had a beneficial effect on the automotive business, “NAFTA helped the U.S. auto industry survive”(Hanson), without the help of this trade agreement cars would be produced at a much higher opportunity cost. Although now, the U.S. is able to trade with Mexico and Canada who are both making car parts at a lower price while still producing efficiently, “The U.S. auto industry designed a very efficient production network that spanned the U.S., Mexico and Canada. ”(Hanson). The trade agreement made products from Mexico and Canada cheaper to import. ,“NAFTA increased farm exports because it eliminated high Mexican tariffs”(The Balance).

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Both articles discuss what purpose The North American Free Trade Agreement (NAFTA) should serve. However, the authors have different views regarding NAFTA. I am analyzing the second article because I appreciate the way the author portrays NAFTA. The author, Mark Milke, focuses on the benefits of the free trade agreement by using normative, positive, and analytical statements. These statements help him further the case he is making in his article.

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She uses an example of the Department of Education which do not allow students to abuse the loophole. She explains, “The Department of Education prohibit the use of pre-dispute mandatory arbitration agreement by for-profit schools. “Therefore, it would apply the same for Federal Trade Commission, which should not allow the IoT’s company to use “pre-dispute mandatory arbitration agreement.” This gives her suggestion a strong support because it based on the regulation that already exist. By using comparison and contrast, the author promotes her

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Trans-Pacific Partnership (TPP) is a trade agreement between 12 influencing countries, which are United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Together, these countries make up 40% of the world's total GDP as well as 26% of the world trade, meaning that the pact will affect approximately 40% of the world’s economy. The agreement is believed to open markets, set high-standard trade rules, and address 21st century issues in the global economy. It includes 30 chapters regarding trade and trade-related issues, including trade in goods, e-commerce and telecommunications, intellectual property rights, and many more. The TPP itself has been negotiated 'secretly' for

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This, however could be challenged by the World Trade Organization. The other country in NAFTA, Canada, has said it will also pursue trade advantages with Mexico when NAFTA is renegotiated. The article explains that a NAFTA withdrawal by the U.S. “would likely bring up thorny issues that have long dogged relations, including softwood lumber imports from British Columbia” (Mauldin) as well as Canadian cattle which are raised for the U.S beef

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The Factors Model theorizes that owners of relatively-abundant factors should support free trade like the TPP. The United States is relatively abundant in capital and land. This means that owners of land and

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First, we should make sure that we cover all aspects of North American Free Trade Agreement (NAFTA) 1994. This trade agreement allowed free trade zone for U.S, Canada, and Mexico. The goal was to decrease trading costs and make these countries completive in the global marketplace (Amadeo, 2017).

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The TPP, also known as the Trans Pacific Partnership agreement, regarded as the most brazen corporate power grab in history(Hedges), is a document that at face value which intends to bring major trade benefits and promise to improve the overall economy’s well being. But when deeply analyzed and viewed critically, the document is the most corrupt and ultimately unfair “agreement” that has been proposed in all of history, according to many different writers and analysts. The deal includes a total of the 12 Pacific Rim nations, including the United States and allies such as Australia and Japan(to name a few), who are all “striving” to improve the economy and business between each other and the world. With the common goal, as stated before at face value, promises to create even more jobs, improve economic and market conditions,

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when the law was called upon in 2009 to decide what “instrumentality” within the context (“U.S v. Joel”…, 2009). Interpreting the law can cause many problems. Another weakness of the law is that it prohibits progress for the United States and firms. The FCPA is far from “upgrading international business confidence” and as researchers put it “if the government and business fail to cooperate with each other, all of us will become losers sooner or later” (Barone & Kim,

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1. North American Free Trade Agreement (NAFTA): Signed in 1993 , it is the most extensive free trade agreement and has promoted economic growth in its three signatory countries, i.e. the U.S, Canada and Mexico. Removal of tariffs between the partner countries in January 2008 led to decrease in costs of imports as well as reduction in inflation. This led to rise in investments and profits.

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The elimination of tariffs has allowed the participants of The North American Free Trade Agreement (NAFTA) to focus on efforts on natural advantages. While the U.S. has an advantage in producing high-quality goods for low costs, Mexico is able to produce certain foods at a lower cost. Hence both countries are able to purchase one another’s products at a cheaper price and is an intention of FTAs. Consequently, exporters are able to produce more, increasing their nation’s Gross Domestic Product. (GDP).

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In 2009, the Harper government successfully implemented free trade agreements with the European Free Trade Association, Peru, and Jordan (Drummond, 2006, 1). The two North American agreements were supposed to further develop the Canadian economy, but it did not bring the results the Canadian government pursued. Canada’s dependence on the U.S market resulted in 86 per cent of Canadian export within the first few years under NAFTA (Drummond, 2006, 1). The dependency on the U.S market convinced the Harper government to target agreements not related to the U.S, similar to what the Trudeau government had done under the Third Option initiative in 1972 (Drummond,

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