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❶But these countries are also divided by their interests and social norms, for instance Mexico is more traditional and native while the US have more connections with the EU countries. Future Directions With the NAFTA and the modernised, efficient transportation links throughout the continent, the entire North American market is easily served from a Canadian-based company.

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North American Free Trade (NAFTA) Essay

The gains in Mexican economy can be seen in U. However it becomes obvious that the wages of the workers in Mexico remind low comparing to American wages. Agriculture became one of the most complex issues in the NAFTA negotiations, and considering that these are the countries with such a different levels of development it becomes even more complex. In Mexico agriculture is a major source of development, and it accounts of 25 percent of all the jobs, as well as 10 percent of the GDP. Mexico has some advantages in growing some crops, like fruits and vegetables, however the Mexican farmers are not competitive internationally, because of many reasons, and some of them are: It is a challenge for Mexican farmers, who tend to be poor peasants on dry land, who survive by growing basic crops, like maize.

Due to this fact they try to search for wage-work, in many case this force they to migration north of the border Apendini, in Mexico, and the North American.. In addition to NAFTA in Mexico adopted a stabilization package that included tighter government spending and monetary policies, salary limitation, and some expansion of privatization.

Reforms initiated by NAFTA together with the structural adjustment programmes had a significant effect on Mexican farmers.

Touched by cuttings in government support, the farmers are drown in a flood of imports, denied the access to American markets they were promised. Imports have increased by 14 percent a year or more since to A lot of farmers are forced to abandon their crops that supported their families and leave up north in order to look for wage- paid work Globalization is killing, Thompson, paper.

The market for consumer products related to information technologies has been especially buoyant. In the service sector, an ageing and increasingly affluent population is increasing demand for home maintenance, health services, financial services, travel and leisure activities.

Among the trends shaping the Canadian consumer marketplace of the future are increasing ethnic diversity and multiculturalism; continued expansion of the service sector; greater public awareness of environmental issues and values; increasing consumer demands for convenience; and a trend toward differentiating, segmenting and customising consumer markets.

The United States There is no other national market for consumer and industrial products and services that is near the size of the U. The demand for imports in the U. Simply put, the U. What is less appreciated about the U. There are more than million consumers within a day's drive of southern Ontario. Winnipeg is just 17 hours by road from Chicago and eight hours from Minneapolis. From Vancouver, markets all along the Pacific coast of the U. It takes about 48 hours to ship by truck from Vancouver to Los Angeles.

With increasingly efficient transportation routes, even the southern U. In , the population of the U. This is dispersed across four large regional markets: The GDP of each of these regions is larger than individual countries of Western Europe, with the single exception of Germany. As a share of total U. The South's share is around 31 percent. In , per capita GDP in the U. Generally speaking, consumer markets in the U. For companies offering consumer products and services, these similarities provide an opportunity to test products in the Canadian market before making an entry into the U.

If a foreign company is considering an investment in North America to, among other things, tap the rich U. When cost-effective access to the U. Mexico In contrast to the advanced economies of Canada and the U. Mexico's GDP per capita is 15 percent that of the U. On the other hand, with a population of about 92 million, most of which is young, a growing middle class of educated Mexicans, and programs of political and economic reform, there is a dynamism in Mexico that is inviting. With dynamism comes volatility, and Mexico is no stranger to this.

The plunge of the peso that began at the end of and continued through the first quarter of created a financial crisis that has led to a significant decline in economic activity and real incomes. But the economy is recovering and investor confidence is being restored.

In the coming years, there will probably be more vacillations as the economy goes through periods of rapid growth and then slows to keep inflation under control. Throughout these cycles, Mexico will undoubtedly be relying more on international trade and investment as engines of growth. In , total trade was the equivalent of almost 40 percent of the country's GDP. Mexico will remain a significant import market in the years ahead. A potential foreign investor in North America should therefore consider the advantages of locating in Canada, and supplying the Mexican market from a Canadian location.

In approaching the Mexican market, companies should be aware of its diversity. There are large disparities in incomes, regional markets vary considerably, and there is demand for basic infrastructural needs as well as more sophisticated consumer and industrial products. Mexico City is the country's economic, financial and industrial centre.

With upper and middle-income groups numbering in the vicinity of five to six million, it offers the largest consumer market in the country. Guadalajara, with a population of around 3. Monterrey, of roughly the same size as Guadalajara, is one of the country's most important industrial centres, with 53 percent of Mexico's top businesses.

Despite Mexico's current economic difficulties, there are many business opportunities in the Mexican market. Perhaps most enticing, though, is Mexico's potential. One of the more significant developments in the history of the two countries' trading relationship came in with the signing of the Canada-U.

Auto Pact, which governed duty-free trade in automobiles and parts. Largely as the result of this agreement, trade in this sector has remained a central part of the two countries' overall trade.

Many of the tariffs would be eliminated before the end of the ten-year time frame, and the initial phase-out schedule for products could be accelerated if the two sides agreed. A number of other sectoral and institutional issues were included in the Agreement to facilitate trade, identify exceptions and clarify other aspects of the trading relationship.

Nevertheless, the FTA had a dramatic effect on the volume of two-way trade. These gains were registered despite an economic recession in the middle of this period. Specific sectors, such as office, telecommunications and precision equipment; chemical products; pharmaceuticals; and textiles showed particularly strong growth in trade. By this time, Canada-U. Under NAFTA, a tariff-reduction schedule was worked out for trade with Mexico whereby tariffs would be reduced over a ten-year period from the implementation date.

Most of Mexico's non-tariff barriers, such as import licences, will also be eliminated during this period. Tariffs on Canadian exports to Mexico will be phased out over 10 years. Mexico has provided immediate duty-free access for many of Canada's key export interests. Settlement or determination of remedies regarding anti-dumping and countervailing disputes is by bi-national panels, not domestic courts. Disagreements between investors and NAFTA governments may be settled through international arbitration.

All three countries have agreed to provide substantially increased access to government procurement opportunities not only in goods, but also in services, including construction services. Simplified procedures expedite business travel. Eligible business people can be granted temporary entry without prior approval procedures.

The NAFTA includes comprehensive coverage of intellectual property rights to encompass standards of rules and enforcement. Canada's two-way trade with the U. These growth rates were higher than the increase in Canada's overall trade, meaning that North America is becoming even more important for Canadian exporters and importers. In , 82 percent of Canadian exports went to the U.

North-south Transportation Links North-South linkages by road, rail, marine, air, pipeline, and intermodal services permit easy access to North American markets, especially the U. Since transborder business is a vital part of their operations, Canadian carriers get goods to the U.

We look at North America as one big country. Road Road transport is dominant, a fact which reflects the large flow of manufactured goods and the integration of regional markets. The trucking industry has adapted well to the demands of just-in-time JIT manufacturing.

The Canadian for-hire trucking industry earns about one fifth of its intercity revenues from transborder business. Several trucking companies specialise in this increasingly competitive area.

Strategic alliances between Canadian and U. Canadian rail carriers have co-ordinated Canada-Mexico freight services through agreements with the Mexican state railway and with U. Many of these facilities are open year-round. Lawrence Seaway system and on the east and west coasts of North America. Lawrence Seaway serves an area containing some 61 million people in much of the industrial heartland of North America. Air Flights from Canadian airports serve all major North American centres, allowing for overnight delivery by air cargo.

Following the signing of the "Open Skies" agreement, Canadian carriers have unlimited rights to fly from anywhere in Canada to any point in the United States. Equal access for U. The arrangement will mean better connections and more competitive pricing for both passengers and cargo. Complementing the agreement is the "Border Management Accord," a planned expansion of pre-clearing facilities to allow travellers to the U.

Increasingly, intermodal services are competing with trucking companies for transborder traffic. Railways are making important investments in intermodal terminals and equipment to ensure their competitiveness.

Specialised container trains provide timely, high-quality service to Canadian and U. CP Rail has direct access to the port of Philadelphia via one of its U.

Access to other U. Strong Support Services Massive North American trade flows have spawned extensive support services for Canadian companies that ship to the U.

Customs brokers are familiar with all aspects of international shipping, from packaging and labelling requirements to the relative cost-effectiveness of different routings to and from Canada.

Freight forwarders consolidate shipments from several sources to take advantage of volume discounts and design efficient and cost-effective distribution systems.

Companies doing business in Canada also benefit from a nation-wide system of privately-owned warehouses licensed and bonded by the federal government.

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- NAFTA and Maquiladoras The North American Free Trade Agreement (NAFTA), which became effective on January 1, , is a comprehensive, rules-based agreement designed to promote “free-trade” among the United States, Mexico and Canada (NAFTA Forum,).

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The North American Free Trade Agreement (NAFTA) Congressional Research Service agenda with shared values and generate economic growth. Some opponents argue that the agreement has caused worker displacement, and renegotiation could cause further job losses.

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International Business: North American Free Trade Agreement Overview History of NAFTA. In January of , the United States, Canada, and Mexico entered into the North American Free Trade Agreement (NAFTA or the Agreement), and in so doing created the largest free trade zone in the world. Free research papers, free research paper samples and free example research projects on NAFTA topics are plagiarized. goodfilemq.cf is professional research paper writing service which is committed to write top-quality custom research papers, term papers, essays, thesis papers and dissertations.

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North American Free Trade Agreement (NAFTA) is one of the most influential international agreement between the US, Canada and Mexico that defined the economic, social and political development of the three countries and North American region. North American Free Trade Agreement Research Papers North American Free Trade Agreement is the most important and expansive trade agreement ever created and is the largest free trade zone in the world. This is a research paper on the North American Free Trade Agreement.