Economics

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The response address the queries posted in 1573 words with references.

// Here in this paper, we will discuss about North American Free Trade Agreement (NAFTA), its goals concerning trade, whether or not, they have been achieved and some criticisms. We will consider a Company called Zowie Productions and find out the ease of exporting to Canada, as compared to the EU: //

This paper gives an elaborative knowledge to Abbie regarding the North American Free Trade Agreement so that she can export her game in Canada. Abbie is the owner of Zowie Productions. NAFTA came into being on January 1, 1994 comprising United States, Canada and Mexico. NAFTA is more important because it encompasses the whole of North America and is the largest regional economic grouping in the world. The North American Free Trade Agreement (NAFTA) has subsequent two supplements:

The North American Agreement on Environmental Cooperation (NAAEC)

The North American Agreement on Labor Cooperation (NAALC).

// We have just started with the introduction of NAFTA, its two supplements and now, we will talk about some of its details, the areas it covers and their explanation: //

NAFTA has a logical rationale in terms of both geographic location and trading importance. Canadian-Mexican trade was not considerable when the agreement was signed, but it was significant between US and the other two member countries. US is the largest trading partner of both Canada and Mexico. Canada and Mexico are the first and the third most important trading partners with the US. Specifically, this agreement had covered the following areas:

Trade Rules: Safeguards, subsidies, antidumping and standards relating to safety and health.

Provisions to ensure trade in services (consulting, engineering, software, etc.) that exist for trade in goods.

Market access: Tariff and non-tariff barriers, rules of origin, governmental procurement.

Establishing investment rules that will protect the interests of investors (Pagell & Halperin, 2000).

Intellectual property: All the three countries pledge to provide adequate and effective protection and enforcement of intellectual property rights, while assuring that enforcement does not itself become barrier to legitimate trade.

Dispute settlement: This agreement provides a dispute settlement process that will be followed instead of countries taking one-sided action against any appalling party.

// Now, in this section we will discuss the goals of NAFTA, particularly in the area of trade, and then, go on to discuss the areas of its application: //

Goals of NAFTA Concerning Trade

In general, NAFTA goes ...