Paper: An Analysis of North American Free Trade Agreement and its Effects on Mexico

The North American Free Trade Agreement and Its Effect on Mexico (N.A.F.T.A.) The North American Free Trade Agreement or NAFTA as it is commonly referred to, which went into effect on January 1, 1981, is a pact made between the three countries that make up North America. Those three countries are Canada, The United States of America, and Mexico. NAFTA states that these countries will help or assist each other in bringing goods and services between the borders of the three trade territories. It also states that it shall try to enforce the intellectual property rights of the countries and territories that are helped by the North American Free Trade Agreement. Many opinions from the Mexican side of the agreement feel that the enforcement of the intellectual property rights is only stated to better that of the United Sates. Since the intellectual property rights basically states that patents or ideas are free of competition. Which brings American companies in an estimated 6.1 billion dollars. Mexican writer Noam Chomsky believes that the North American F! ree Trade Agreement is only used to better the United States and that NAFTA itself is a failure, but supporters call NAFTA a success and want it to expand across Latin America. U.S. Trade Representative Mickey Kantor calls it a win-win situation for everyone. Although Many analysts say its too early to judge the North American Free Trade Agreements impact on the United States and Mexicos trade, in part because many of its provisions have yet to take effect. While some tariffs and non-tariff barriers were eliminated immediately, others phase out gradually through 2008. The trade agreement hasnt effected Mexico as of late because soon after the trade agreement took affect the Mexican pesos value took a plunge. This greatly slowed the speed of trade between Mexico and the other countries involved in the North American Free Trade Agreement. Not even the negative talk towards NAFTA has seemed to have an effect on the way it is running. | personally think that the North Ameri! can Free Trade Agreement is a good thing to all the countries involved. Even if the United States benefits more than the other two involved in this trade agreement it is still a good thing to Mexico and Canada. It gives Mexico an opportunity to openly trade with the U.S. and Canada, places that would under different circumstances wouldnt be tradable with. So, in conclusion the North American Free Trade Agreement has had both a positive influence and a negative influence on the country of Mexico, but only time will tell if it was worth Mexicos time and effort. **Bibliography** ...