Which Of The Following Was An Effect Of The North American Free Trade Agreement (Nafta)

The role of the Internet in international trade has expanded considerably since nafta began more than 20 years ago. While technological progress has profoundly changed the way businesses trade and operate across international borders, some companies say that new barriers have also been created that do not address existing trade rules. NAFTA parties may consider discussing issues related to the cross-border transmission of information electronically or the forced location of data centres. Such provisions could provide North American companies with greater flexibility in processing and storing data relevant to their operations. Some of these issues have been addressed in the TPP. one or more tariffs or other import restrictions from a foreign country or the United States or other barriers to international trade overly weigh or limit U.S. foreign trade or affect the U.S. economy … 90 In 2015, the Congressional Research Service concluded that “the overall net impact of NAFTA on the U.S. economy appears to be relatively small, not least because trade with Canada and Mexico accounts for a small percentage of U.S.

GDP. However, there have been adjustment costs for workers and businesses as the three countries have prepared for more open trade and investment between their economies. The report also estimated that nafta has added $80 billion to the U.S. economy since its inception, a 0.5% increase in U.S. GDP. [85] After joining the GATT, the Mexican government adopted the final decree in 1989 that liberalized industry rules but did not completely remove them. At the time of the NAFTA negotiations, automakers were still required to have a certain percentage of the national content in their products and to meet export requirements, both of which were considered major barriers to the industry. In addition, Mexico had tariffs of 20% or more on imports of automobiles and spare parts. These trade restrictions were lifted under NAFTA. The North American Free Trade Agreement (NAFTA) is an agreement that brought together three North American countries, the United States, Canada and Mexico, to form a trading bloc in North America.

The agreement was designed to reduce trade costs and make North America a competitive trading bloc in the global marketplace. Most economists argue that trade liberalization promotes overall economic growth and the efficiency of trading partners, although there are short-term adjustment costs. NAFTA was unusual globally because it was the first time that a free trade agreement involved two prosperous and developed countries with a low-income developing country. That is why the agreement has received a great deal of attention from U.S. politicians, manufacturers, service providers, land producers, unions, non-governmental organizations and academics. Supporters argued that the agreement would help create thousands of jobs and reduce income gaps between Mexico and its northern neighbors.