To ease concerns that Mexico's low wage scale would cause U.S. The speed of export-product inspections and certifications was also improved. Also, national standards could no longer be used as a barrier to free trade. The three NAFTA countries agreed to toughen health, safety, and industrial standards to the highest existing standards among the three countries (which were always U.S. Nontariff barriers were the biggest obstacle to conducting business in Mexico that small exporters faced. truckers and streamlining border processing and licensing requirements. This includes opening the border and interior of Mexico to U.S. Elimination of nontariff barriers by 2008.Among the areas specifically covered by NAFTA are construction, engineering, accounting, advertising, consulting/management, architecture, health-care management, commercial education, and tourism. Approximately 50 percent of the tariffs were abolished immediately when the agreement took effect, and the remaining tariffs were targeted for gradual elimination. NAFTA addressed this imbalance by phasing out tariffs over 15 years. Additionally, Mexican tariffs on U.S.-made products were, on average, 250 percent higher than U.S. Before NAFTA, tariffs of 30 percent or higher on export goods to Mexico were common, as were long delays caused by paperwork. Tariff elimination for qualifying products.Small businesses were among those that were expected to benefit the most from the lowering of trade barriers since it would make doing business in Mexico and Canada less expensive and would reduce the red tape needed to import or export goods. This was to be done while also addressing environmental and labor concerns (although many observers charge that the three governments have been lax in ensuring environmental and labor safeguards since the agreement went into effect). NAFTA was created to eliminate tariff barriers to agricultural, manufacturing, and services to remove investment restrictions and to protect intellectual property rights. and Canada since 1989 NAFTA broadened that arrangement.) On that day, the three countries became the largest free market in the world- the combined economies of the three nations at that time measured $6 trillion and directly affected more than 365 million people. The North American Free Trade Agreement (NAFTA) is a treaty entered into by the United States, Canada, and Mexico it went into effect on January 1, 1994.
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