abhishreshthaa
Abhijeet S
THE NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)
The government of the United States and Canada in 1988 had agreed to enter into a free trade agreement, which took effect on january1, 1989. The goal of the agreement was to eliminate all tariffs on bilateral trade between Canada and the United States by 1998.
This was followed in 1991 by talks among the United States, Canada, and Mexico aimed at establishing a North American free trade agreement for the three countries. The talks concluded in august 1992 with an agreement in principle and by late 1993, the agreement had been ratified by the government of all three countries.
NAFTA’S OBJECTIVES
Abolition within 10 years of tariffs on 99 percent of the goods traded between Mexico, Canada and the United States.
Removal of most barriers on the cross-border flow of services, allowing financial instructions, for example unrestricted access to the Mexican market by 2000.
Protection of intellectual property rights.
Removal of most restrictions on foreign direct investment between the three member countries, although special treatment (protection) will be given to Mexican energy and railway industries, American airline and radio communication industries and Canadian culture.
Application of national environmental standards provided such standards have scientific basis. Lowering of lure investment is described as being inappropriate.
Establishment of two commissions with the power to impose fines and remove trade privileges when environmental standards or legislation involving health and safety, minimum wages or child labor are ignored
The government of the United States and Canada in 1988 had agreed to enter into a free trade agreement, which took effect on january1, 1989. The goal of the agreement was to eliminate all tariffs on bilateral trade between Canada and the United States by 1998.
This was followed in 1991 by talks among the United States, Canada, and Mexico aimed at establishing a North American free trade agreement for the three countries. The talks concluded in august 1992 with an agreement in principle and by late 1993, the agreement had been ratified by the government of all three countries.
NAFTA’S OBJECTIVES
Abolition within 10 years of tariffs on 99 percent of the goods traded between Mexico, Canada and the United States.
Removal of most barriers on the cross-border flow of services, allowing financial instructions, for example unrestricted access to the Mexican market by 2000.
Protection of intellectual property rights.
Removal of most restrictions on foreign direct investment between the three member countries, although special treatment (protection) will be given to Mexican energy and railway industries, American airline and radio communication industries and Canadian culture.
Application of national environmental standards provided such standards have scientific basis. Lowering of lure investment is described as being inappropriate.
Establishment of two commissions with the power to impose fines and remove trade privileges when environmental standards or legislation involving health and safety, minimum wages or child labor are ignored