Agreement That Ended Trade Barriers Between The United States Canada And Mexico

The parties would start a formal discussion, followed by a discussion at a meeting of the Free Trade Committee, if necessary. If the disagreement has not been resolved, a body has verified the dispute. The trial helped all parties avoid costly lawsuits in local courts and helped them interpret the complex rules and procedures of NAFTA. This protection against commercial disputes also applied to investors. Mexican politicians saw NAFTA as a chance to accelerate and secure these hard-won reforms of the Mexican economy. In addition to trade liberalization, Mexican heads of state and government have reduced public debt, introduced a balanced budget rule, stabilized inflation and increased the country`s foreign exchange reserves. Although Mexico was hit hard by the 2008 financial crisis due to its dependence on exports to the U.S. market – the following year, Mexican exports to the U.S. fell by 17% and its economy fell by more than 6 percent – its economy recovered fairly quickly and returned to growth in 2010.

Gordon Hanson, an economics professor at the University of California, San Diego, said nafta helped the U.S. compete with China, saving American jobs. [87] [88] While Mexico lost a few jobs because of NAFTA, China would have lost much more without NAFTA. [87] [88] The immediate objective of NAFTA was to increase cross-border trade in North America, and in this regard it has undoubtedly been successful. Reducing or eliminating tariffs and removing certain non-tariff barriers, such as .B.

Comments are closed.