Which Of The Following Is Not True Regarding The North American Free Trade Agreement (Nafta)
Posted by admin - Tagged

The North American Free Trade Agreement (NAFTA) is a treaty of the United States, Canada and Mexico. it came into force on 1 January 1994. (Since 1989, there has been free trade between the United States and Canada; NAFTA has extended this regime.) On that day, the three countries became the largest free market in the world – the combined economies of the three nations were $6 trillion and directly affected more than 365 million people. NAFTA was created to remove customs barriers for agriculture, manufacturing and services; Eliminating restrictions on investment protection of intellectual property rights. This should be done while respecting environmental and labour concerns (although many observers point to the fact that the three governments have been negligent in environmental and safety at work since the agreement came into force). Small businesses were among those expected to benefit the most from the removal of trade barriers, as this would reduce trade activity in Mexico and Canada and reduce the administrative burden associated with importing or exporting goods. NAFTA repealed Mexico`s protectionist auto decrees and played an important role in the integration of the auto industry in the three countries. After the agreement, the automotive sector recorded some of the most significant changes in trade. The NAFTA provisions have included phasing out tariffs and phasing out many non-tariff barriers. It provided for uniform country-of-origin rules, better protection of intellectual property rights, the adoption of less restrictive procurement practices, and the abolition of performance requirements imposed on investors in other NAFTA countries. U.S. automakers, such as ford Motor Company, often rely on parts from the U.S., Canada and Mexico for final assembly of a vehicle. North American auto parts manufacturers may use inputs and components from another NAFTA partner to assemble parts that are then delivered to another NAFTA country, where they are assembled into a vehicle sold in one of the three countries.59 According to some estimates, north American-produced cars sold in the United States have domestic content of between 47% and 85%.

The North American Free Trade Agreement (NAFTA) was inspired by the success of the North American Free Trade Agreement (NAFTA). European Economic Community (1957-1993) to the abolition of tariffs in order to stimulate trade among its members. Supporters argued that the creation of a free trade area in North America would bring prosperity through increased trade and production, resulting in the creation of millions of well-paying jobs in all participating countries.