The Policies Of The European Union And The North American Free Trade Agreement Have Resulted In

Other ancillary agreements have been adopted to allay fears about the potential impact of the Treaty on the labour market and the environment. Critics feared that, in general, low wages in Mexico would attract U.S. and Canadian companies, leading to a relocation of production to Mexico and a rapid decline in manufacturing jobs in the United States and Canada. Meanwhile, environmentalists were worried about the potentially disastrous effects of rapid industrialization in Mexico, which has no experience in implementing and enforcing environmental legislation. Potential environmental issues were addressed in the North American Agreement on Environmental Cooperation (NAAEC), which established the Commission for Environmental Cooperation (CEC) in 1994. The North American Free Trade Agreement (NAFTA) was inspired by the success of the European Economic Community (1957-93) in eliminating tariffs to stimulate trade among its members. Proponents argued that creating a free trade area in North America would bring prosperity by increasing trade and production, which would create millions of well-paying jobs in all participating countries. Key NAFTA provisions called for the phasing out of tariffs, tariffs and other barriers to trade between the three members, some of which were removed immediately and others over a maximum period of 15 years. Finally, the agreement ensured duty-free access for a wide range of industrial goods and goods traded between the signatories. “Domestic goods” status has been granted for products imported from other NAFTA countries, and any national, local or provincial government has been prohibited from imposing taxes or customs duties on these goods. A Free Trade Agreement between Canada and the United States was concluded in 1988 and NAFTA extended most of the provisions of that agreement to Mexico.

NAFTA was created by U.S. governments. George H.W. Bush, Canadian Prime Minister Brian Mulroney and the President of Mexico. Carlos Salinas de Gortari. A provisional agreement on the Pact was concluded in August 1992, signed on 17 December by the three Heads of State and Government. NAFTA was ratified by the national legislators of the three countries in 1993 and entered into force on January 1, 1994. Many critics of NAFTA saw the deal as a radical experiment developed by influential multinationals who wanted to increase their profits at the expense of ordinary citizens of the countries involved.

Opposition groups have argued that the horizontal rules imposed by NAFTA could undermine local governments by preventing them from legislating or legislating to protect the public interest. Critics have also argued that the treaty would lead to a significant deterioration in environmental and health standards, promote the privatization and deregulation of important public services, and supplant family farmers in signatory countries. Although NAFTA did not keep everything its supporters had promised, it remained in force.