North American Free Trade Agreement (NAFTA)

Introduction The North America Free Trade Agreement came into effect in January 1994. It is an exhaustive trade pact that defines the regulations regarding trade and acquisitions (NAFTANOW.ORG). Parties to this agreement include Canada, the United States of America, and Mexico.Advertising We will write a custom essay sample on North American Free Trade Agreement (NAFTA) specifically for you for only $16.05 $11/page Learn More By and by, the pact has lead to the removal of a majority of tariff and non-tariff barriers to costless commerce and investment between the three signatories to the pact (NAFTANOW.ORG). It is the largest free trade area in the whole world in terms Gross Domestic Product (Amadeo). NAFTA is manned by several trilateral institutions that make sure that the pact is properly interpreted and implemented as per the provisions of the pact (NAFTANOW.ORG). These institutions include The Free Trade Commission which has ministerial delegates fr om the member states and whose main role is to arbitrate in disputes related to the pact (NAFTANOW.ORG). Other institutions are the NAFTA Coordinators, Working Groups, the Secretariat and the Commission for Labor Cooperation (NAFTANOW.ORG). Objectives of NAFTA NAFTA was formed to fulfill several goals. Principally, the pact was to do away with all barriers to commerce and aid the cross-border transportation of commodities and services between the member states (NAFTA Secretariat). Secondly, the pact was to enhance an environment of unbiased competition in the jurisdiction of the pact. The pact also aimed at adding more trade chances across the jurisdictions of the member states (NAFTA Secretariat). Over the pact was to offer proper protection of intellectual property rights, establish institutions and procedures for joint oversight and create structures for increased trilateral cooperation in the future (NAFTA Secretariat). Advantages of NAFTA Through the elimination of trade barrie rs, the pact has resulted in the expanded trade, lower levels of unemployment, and afforded consumers more options at very competitive prices. In addition, the three party states have enjoyed increased prosperity (Bautista). Removal of tariffs leads to reduced inflation since it decreases the costs incurred in imports. Cost of trade has also been reduced and this has resulted in increased investment in the free trade area (Amadeo). In regard to increased trade in commodities and services, it was noted that commerce between the member states grew by more than four times between by 2009 (Amadeo). U.S exports to Canada and Mexico increased from 142 billion dollars to 452 billion dollars in 2007 while exports originating from Canada and Mexico to the U.S. grew from 151 billion dollars to 568 billion dollars in 2007 (Amadeo).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The pact has lead to t he increased U.S. farm exports to Canada and Mexico. The exports grew from 22 percent of the whole U.S. farm exports back in 1993 to 30 percent in the year 2007. This was made possible by removal of huge Mexican tariffs. Mexico is the greatest importer of U.S. products like grown beef, soybean meal, apples and beans among others (Amadeo). Services such as healthcare and financial operations have received a big boost as a result NAFTA. For instance, NAFTA increased service exports from the U.S. to Canada and Mexico by 81.8 billion dollars between 1993 and 2007 (Amadeo). Previously, imports from Canada and Mexico were a paltry 35 billion dollars. Such a boost has been made to happen because NAFTA removed barriers in almost all service sectors and this reduced the cost of doing business (Amadeo). The U.S. has enjoyed reduced oil prices courtesy of NAFTA. On the same line, the pact helped The U.S. to minimize her dependence on Middle East and Venezuela for oil imports (Amadeo). As a mat ter of fact, the U.S. does not import oil from Iran any more (Amadeo). Cost of import is relatively low due to reduced tariffs on imports. The enactment of the agreement has also lead to increased Foreign Direct Investment (FDI) in each of the three signatories’ territory (Amadeo). It is interesting to note that The U.S. FDI in Canada and Mexico increased by more than three times between 2007 and 2009 (Amadeo). One of the key reasons for such a growth in FDI is the guarantee that investors have the same legal rights as the local business people (Amadeo). Disadvantages of NAFTA Unfortunately, the agreement has had its own shortcomings. NAFTA leads to a loss of 1.3 million jobs in the Mexican farms (Amadeo). The U.S. subsidized her agribusiness to as high as 40% and thus, on removal of the tariffs, the Mexican peasant found it hard to compete as the U.S. products went for lower prices (Amadeo). The cost of labor is relatively low in Mexico in comparison to the U.S. As such, num erous manufacturing companies transferred their production to Mexico leading to the loss of over 600,000 jobs in the U.S. It was evident that over 80 percent of the job losses in the U.S. were related to the companies that shifted (Amadeo). For those that were lucky to retain jobs, their wages were slashed to keep up with the industries in Mexico (Amadeo). Conclusion In conclusion, a free trade area has advantages as well as disadvantages. Those that are not avoidable should be accepted as the necessary trade offs for a better state. The advantages are more than the disadvantages.Advertising We will write a custom essay sample on North American Free Trade Agreement (NAFTA) specifically for you for only $16.05 $11/page Learn More Works Cited Amadeo, Kimberly. â€Å"What is NAFTA?† About. com. US Economy. 2 February 2012. Web. Bautista, Luis Ernesto Derbez. â€Å"Advantages, Disadvantages and the Future of NAFTA.† New York Times. 6 October 2 011. Web. NAFTA Secretariat. â€Å"North American Free Trade Agreement.† 29 March 2013. Web. NAFTANOW.ORG. â€Å"NAFTA.† 12 April 2012. Web. This essay on North American Free Trade Agreement (NAFTA) was written and submitted by user Lylah S. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

A Good Essay Sample of Food

A Good Essay Sample of FoodA good essay sample of food is the perfect example of different types of essays. We all know that we write these kinds of things for school, research papers, and even personal essays, but do you know what types of essays you write for people you like? It's a different experience when you are reading about things you love. You will begin to develop this habit as you read and are enjoying yourself.I believe that everyone should write about things they are passionate about, even if they don't have their own opinions on them. Let's face it; everyone has something they are passionate about. The point is that you want to share what you have learned about them with others. If you are already a food blogger and are aware of the essay samples of food journal that has been done for other bloggers, you should definitely incorporate them into your blog.You may be wondering what the essay samples of food journal are. They are simply journals or websites that allow the b logger to share their personal blogs. They can share pictures, thoughts, and whatever else they may have to say about their favorite foods. Of course, the top food blogs in the world are going to make it big. That is why you should really take the time to take some time to learn about the best ways to get your essay published.They aren't going to be easy to come by. There are going to be plenty of plagiarism and blog competition websites out there. One thing that you need to remember though is that it isn't the first time you have attempted to put a blog online. So there is no reason why you shouldn't give it another try. Once you have been rejected before, it can be discouraging to try again.If you are going to use an essay sample of food journal as a method to get your writings in front of people, you need to go over it in detail. Maybe it was so important that it didn't even get in the way of your writing! Sometimes, the essay is too long that it drags down the whole article. If you are trying to impress an editor or someone else, go ahead and trim it down a bit. Just take a little time to see if it will work.When you use an essay sample of food journal, there is a time and place for everything. You can use them for essays for college, for essays for professional writing, and even for essays for marketing articles. Make sure that you always keep these examples around because you never know when you are going to run across one and be inspired to write the same type of essay you saw.There is nothing wrong with sharing your own opinions and experiences with the food you like. You may be the only person who has ever experienced it, but that doesn't mean you shouldn't share it with others. This is one thing that can inspire people to change and move onto something better.A good essay sample of food is something that you shouldn't pass up. If you have been doing this for quite some time now, I'm sure you have a few favorites. Use them wisely and you will find the m great.