NAFTA: Two Sides of the Peso

Economics / April 23, 2015 / No Comments /
This paper studies The North American Free Trade Agreement (NAFTA) and its effects on the countries in the region.

This paper discusses the NAFTA trade agreement which removed most barriers to investment in between Canada, the United States and Mexico. It studies the positive and negative effects of this agreement from the point of view of each of the three countries involved. It analyzes several sources on this issue including excerpts of speeches by world leaders. The author concludes that the verdict on this agreement, if it is good or bad for the region, has yet to be seen.
“The North American Free Trade Agreement (NAFTA) went into effect January 1, 1994. The North American Free Trade Agreement allows US companies to sell their goods in Mexico tariff-free. It also allows Mexicans to set up low-wage factories to produce their goods to sell in the United States duty free. [Dowling, 1996]. This agreement removed most barriers to investment in between Canada, the United States and Mexico. Its intention was to boost the economies of all three countries by expanding their potential markets and allowing them to take advantage of what each of the other two countries had to offer. Since its adoption, its effects have been debatable, especially concerning safety and environmental issues in the United States and the effect on the Mexican Peso.”


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