Potential Emphasis of NAFTA in the Us, Mexico and Canada: Ken Research The North American Free Trade Agreement (NAFTA) is a treaty signed by Canada, Mexico and the United States creating a mutual trade alliance in North America. The treaty was signed in 1992 and was effective from January 1st 1994. NAFTA was originally created to heighten financially viable integration in the USA, Mexico and Canada and its vision was to increased economic prosperity in these countries. The main concept of NAFTA was to make it easy for companies in these countries to accomplish domestic businesses. According to the market research report, Publishing North America (NAFTA) Industry Guide 2017", NAFTA eliminated tariffs on all goods traded across the three nations. Any one of the countries can withdraw themselves from NAFTA, after giving a six months notice period. A research on NAFTA states that there was a mixed effect on the US labour force. Somehow few industries have shrunk and others have grown. In addition, few production industries were moved to Mexico resulting in plant shutdowns and mass layoffs, regardless of trade. As stated by NAFTA supporters, there was neither huge unemployment nor a large economic gain. The most affected workers are those who depended heavily on tariff protections in place prior to NAFTA. The affected industries wage growth dropped by 17% compared to the wage growth in unaffected industries. As per the Council on Foreign Relations (CFR), NAFTA has given a major boost to Mexican farm exports to the US, which has tripled since NAFTA's introduction. In Mexico, Mexican manufacturing jobs were created in thousands, which positively impacted the Mexican productivity and consumer prices. The Mexico’s economy started to grow rapidly from the year 1993, but poverty sill remains same as it was in the year 1993 with increase in unemployment. NAFTA deepened Mexico's dependency on food imports rather than fulfilling its promise of providing cheaper food to Mexicans. Canada witnessed strong growth in cross-border investment as per CFR. The USA and Mexican investments in Canada have tripled and specifically Canadian agriculture was boosted. The employment in Canadian manufacturing industries was steady. Also, the productivity gap between the Canadian and US economies remains liberal. Commercial samples should not exceed US $1 or equivalent Canadian or Mexican currency and samples can be imported duty free if they are marked torn or perforated or unsuitable for sales. The importing country has the right to deny NAFTA if NAFTA regulations are not followed and if the goods are not manufactured in one of the NAFTA countries. All goods purchased in Canada, Mexico and the united States are subject to customs duties and taxes. The amount of customs duties charged is based on the individual country and their corresponding tariff system.
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