Nafta – Advantages And Disadvantages
NAFTA ? Advantages and Disadvantages
In March of 1994, NAFTA (North American Free Trade Agreement) was signed by leaders of the United States, Mexico, and Canada. This agreement is about tariffs and cooperation of trade among the three countries. The three countries receive many benefits from NAFTA. There are also disadvantages of this agreement.
The major advantage for each country is free trade and more exportation. In Mexico, the government says that NAFTA produces more foreign investment. The industries that gain the most with NAFTA are maquiladoras (assembly plants) and the automobile industry. Production is cheaper here than in other countries because there is cheap labor. In the United States, many companies have been benefiting from NAFTA, especially companies that sign long-term agreements. Industries of banking, energy, equipment, and construction have more advantages than other industries. Also, Texas receives more benefits than other states. It?s close to the Mexican border and has many trading facilities like modern airports. Because other countries have benefited from NAFTA, other countries want to join also. The president of Chile, Eduardo Frei, went to the United States in March to talk to American leaders about NAFTA. He thinks that inclusion in NAFTA would help the Chilean economy.
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