Regional Integration Paper
Running head: REGIONAL INTEGRATION PAPER
Regional Integration Paper
University of Phoenix
July 19, 2010
Regional Integration Paper To define regional economic integration would be to say to arrange an agreement between country’s that agree to manage trade, fiscal or momentary policies. Regional economic integrations is also defined as “agreements among countries, in geographic region to reduce, and ultimately remove tariffs, and nontariff barriers to the free flow of goods, services, and factors of production between each other” (Hill, 2009, p. 276). The year 1992 in the month of August talks between the governments of the United States, Canada and Mexico took place. These talks lead to the North American Free Trade Agreement (NAFTA). This agreement eliminated all tariffs on bilateral trade between the three countries United States, Canada, and Mexico. NAFTA became law on January 1, 1994. “Under the NAFTA, all non-tariff barriers to trade between the United States, Canada and Mexico were eliminated; many tariffs were eliminated immediately, with others being phased out over periods of 5 to 15 years” (U.S. Customs and Border Patrol, 2008).
Numerous levels of regional economic integration exist. One level is in the free trade area which has no barriers for the trade of goods among member countries. Another level is where customs union which is a free trade area that includes a common external trade policy. A common market which is a customs union that allows production to move between members is another level. Another level is an economic union which is a common market that requires a common currency, tax rate, and monetary and fiscal policies. Finally the last level is a full political union which is an economic union that includes a central political unit to coordinate the economic, social and foreign policy of member states. (p. 277 - 278).
For
People both support and criticize the regional economic integration. The supporters accept as
Regional Integration Paper
University of Phoenix
July 19, 2010
Regional Integration Paper To define regional economic integration would be to say to arrange an agreement between country’s that agree to manage trade, fiscal or momentary policies. Regional economic integrations is also defined as “agreements among countries, in geographic region to reduce, and ultimately remove tariffs, and nontariff barriers to the free flow of goods, services, and factors of production between each other” (Hill, 2009, p. 276). The year 1992 in the month of August talks between the governments of the United States, Canada and Mexico took place. These talks lead to the North American Free Trade Agreement (NAFTA). This agreement eliminated all tariffs on bilateral trade between the three countries United States, Canada, and Mexico. NAFTA became law on January 1, 1994. “Under the NAFTA, all non-tariff barriers to trade between the United States, Canada and Mexico were eliminated; many tariffs were eliminated immediately, with others being phased out over periods of 5 to 15 years” (U.S. Customs and Border Patrol, 2008).
Numerous levels of regional economic integration exist. One level is in the free trade area which has no barriers for the trade of goods among member countries. Another level is where customs union which is a free trade area that includes a common external trade policy. A common market which is a customs union that allows production to move between members is another level. Another level is an economic union which is a common market that requires a common currency, tax rate, and monetary and fiscal policies. Finally the last level is a full political union which is an economic union that includes a central political unit to coordinate the economic, social and foreign policy of member states. (p. 277 - 278).
For
People both support and criticize the regional economic integration. The supporters accept as