Pros And Cons Of Nafta

NAFTA

In January 1, 1994, the North American Free Trade Agreement (NAFTA), a state-of-the-art market-opening agreement, came into force. Since then, NAFTA has systematically eliminated most tariff and non-tariff barriers to trade and investment between Canada, the United States, and Mexico. By establishing a strong and reliable framework for investment, NAFTA has also helped create the environment of confidence and stability required for long-term investment. NAFTA was preceded by the Canada-U.S. Free Trade Agreement.

The Canada-U.S. Free Trade Agreement

Negotiations toward a free trade agreement between the United States and Canada began in 1985. Sixteen months later, the two nations came together and agreed to the Canada-U.S. Free Trade Agreement (FTA). It was a historic agreement that placed Canada and the United States at the forefront of trade liberalization.
Key elements of the Agreement included the elimination of tariffs and the reduction of many non-tariff barriers to trade.
The FTA was also among the first trade agreements to address trade in services. It also included a dispute settlement mechanism for the fair and expeditious resolution of trade disagreements, and established a ground-breaking system for the binominal review of trade remedy determinations, thereby providing an alternative to domestic judicial review.

In practical terms, Canada and the United States agreed to remove bilateral border measures on traded goods, which included the removal of tariffs on goods such as meat products, fruits and vegetables, beverages, processed foods, live animals, wine, clothing and textiles, fuels, electrical goods and machinery.
Canada-U.S. FTA ~ Chronology of Events
September 26, 1985: Canada proposes a free trade agreement with the United
States.
October 4, 1987: Substantive negotiations conclude and agreement is reached on the Canada-U.S. Free Trade Agreement.
January 2 1988: The Agreement is signed by leaders from Canada and the United States.
January 1, 1989: The Canada-U.S. Free Trade Agreement enters into force

NAFTA Partners: Canada and the United States implemented a free trade pact in 1989. In 1994, NAFTA broadened the free trade area to include Mexico.
NAFTA Economy: Today NAFTA covers a North American economy with a combined output of US$17.0 trillion.
NAFTA Population: The NAFTA region is home to 444.1 million people, 33.3 million of whom live in Canada, 304.1 million in the United States, and 106.7 million in Mexico.
NAFTA Languages: English, Spanish, and French are languages widely spoken in the NAFTA countries. However, many other languages are spoken across the continent.

One in five jobs in Canada is in part linked to international trade, and Canada’s prosperity is built on its openness to international trade and investment. As such, the North American continental partnership is without a doubt an important competitive advantage for Canada. Canada is using this continental platform as a way to help Canadian business embrace commercial opportunities around the world.

Disadvantages

1. NAFTA allows United States to take advantage of Canada and its resources:
2. Canadian Industries and companies are becoming less competitive:
3. Canada’s culture is getting mixed up with US culture
4. Canada is too dependant on United States as Canada's source of economy.

Advantages

1. Canada can access their goods and services to Mexico and the United States.
2. Attract investors as the agreement reduces some risk for foreign investors.
3. Reduction of unemployment rate by sending their people in US and Mexico.
4. The improvements of living conditions