The Importance Of The North American Free Trade Agreement
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North America Free Trade Agreement- the goal is to eliminate tariffs on bilateral trade between Canada and the United States by 1988. This was followed by 1991 by talks among the United Stated, Canada, and Mexico (271). The North American Free Trade Agreement is extremely important since the U.S. trade with NAFTA has unlocked many opportunities for millions of Americans who support jobs and exports that are made in America. The prices for exporting and importing qualifying products were significantly high and NAFTA made it possible to reduce tariffs that caused purchases between Mexican and Canadian goods to become easier. The low tariffs make trading easier among the three countries. Along with increases of trade between these counties,
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This agreement enabled Wal-Mart to enter and dominate markets with its stores and working with suppliers who provide the cheapest place to make products. Wal-Mart continues to grow and NAFTA eliminated many of the existing government restrictions on where Wal-mat could operate. This allowed Wal-Mart to become the largest retailer in the NAFTA countries (United stated, Canada, and Mexico). It eliminated the tariffs and import controls on goods that move between the three countries. What this means for Wal-Mart is that their suppliers can send their products to be assembled in Mexico, where labor is cheaper and have low taxes. Then these products will be sent back home to sell at prices cheaper than if the goods were to be produced in the United States. The factories in Mexico where the products were assembled helped the Mexican factories (maliquidoras) to double and allow more employment. Wal-Mart wants to continue to open more stores in other countries and wants to market access rights that are provided by NAFTA. Wal-Mart has changed they way that Mexico does business. NAFTA also allowed more transportation and between suppliers that was due to an increase in competition. When NAFTA was implemented these three countries became a free trade zone that allowed Wal-Mart to reduce their tariffs. Tomamtoes, pepers, and cucumbers often come from Canada and seasonal fruit from mexico whoch all end up on shelves of supermarkets like
This agreement enabled Wal-Mart to enter and dominate markets with its stores and working with suppliers who provide the cheapest place to make products. Wal-Mart continues to grow and NAFTA eliminated many of the existing government restrictions on where Wal-mat could operate. This allowed Wal-Mart to become the largest retailer in the NAFTA countries (United stated, Canada, and Mexico). It eliminated the tariffs and import controls on goods that move between the three countries. What this means for Wal-Mart is that their suppliers can send their products to be assembled in Mexico, where labor is cheaper and have low taxes. Then these products will be sent back home to sell at prices cheaper than if the goods were to be produced in the United States. The factories in Mexico where the products were assembled helped the Mexican factories (maliquidoras) to double and allow more employment. Wal-Mart wants to continue to open more stores in other countries and wants to market access rights that are provided by NAFTA. Wal-Mart has changed they way that Mexico does business. NAFTA also allowed more transportation and between suppliers that was due to an increase in competition. When NAFTA was implemented these three countries became a free trade zone that allowed Wal-Mart to reduce their tariffs. Tomamtoes, pepers, and cucumbers often come from Canada and seasonal fruit from mexico whoch all end up on shelves of supermarkets like