Introduction
Globalization has come to change the rules and procedures of international trade and markets, increasingly interconnecting more and more countries through the creation of regional treaties. In January 1994, Mexico, the United States and Canada signed the North America Free Trade Agreement (NAFTA) with the intention of establishing an intraregional trade-flow, creating social, political and economic opportunities for signatory countries (NAFTA). However, over the years NAFTAs signatory countries have demonstrated to be impacted differently due to differences of economic and technological development and infrastructure. Over the years, Mexico has significantly increased its agricultural deficit levels (Polaski). Many blame this …show more content…
president Bill Clinton, NAFTA was a promising free trade agreement between the United States, Mexico and Canada (NAFTA). NAFTA was established with the objective of gradually eliminating tariffs, promoting economic growth, investment and completion among the three countries, the regional treaty covers different things such as merchandise trade, investment, labor markets and environmental policies, however, it excludes the industries of telecommunication, television and transportation (Polaski). Since its establishment, NAFTA has seen a net gain of 39.7 million jobs and merchandise trade between member countries has tripled to $946.1 billion dollars in 2009 and according to NAFTA, “…partners exchange about US$2.6 billion in merchandise on a daily basis with each other…” …show more content…
agricultural trade policies in Mexico have been modified in response to peasant mobilizations and international commitments,” furthermore, “Mexico’s position within the WTO has maintained an equilibrium between domestic constraints and international imperatives” (Moreno-Morales). As a developing nation, Mexico’s main challenges will be that of coping with the increasing innovations, technology and strong competition from its regional trade agreement partners (Canada and the United States). Some potential solutions could be that of restructuring Mexico’s agricultural institutions, providing better administration and economic support to its farmers, among others.
Moreover, Mexico must expect real and potential changes in the long term. Short term, Mexico could possibly ameliorate and gradually lower its agricultural deficit through the support of the private sector (e.g. banks) by providing grants and loans at low interest rates and achievable requirements. Furthermore, institutions such as the World Trade Organization should increase the monitoring and surveillance to countries within free trade agreements (such as NAFTA) to ensure that there is fair competition and thus prevent situations like dumping (as previously
Globalization has come to change the rules and procedures of international trade and markets, increasingly interconnecting more and more countries through the creation of regional treaties. In January 1994, Mexico, the United States and Canada signed the North America Free Trade Agreement (NAFTA) with the intention of establishing an intraregional trade-flow, creating social, political and economic opportunities for signatory countries (NAFTA). However, over the years NAFTAs signatory countries have demonstrated to be impacted differently due to differences of economic and technological development and infrastructure. Over the years, Mexico has significantly increased its agricultural deficit levels (Polaski). Many blame this …show more content…
president Bill Clinton, NAFTA was a promising free trade agreement between the United States, Mexico and Canada (NAFTA). NAFTA was established with the objective of gradually eliminating tariffs, promoting economic growth, investment and completion among the three countries, the regional treaty covers different things such as merchandise trade, investment, labor markets and environmental policies, however, it excludes the industries of telecommunication, television and transportation (Polaski). Since its establishment, NAFTA has seen a net gain of 39.7 million jobs and merchandise trade between member countries has tripled to $946.1 billion dollars in 2009 and according to NAFTA, “…partners exchange about US$2.6 billion in merchandise on a daily basis with each other…” …show more content…
agricultural trade policies in Mexico have been modified in response to peasant mobilizations and international commitments,” furthermore, “Mexico’s position within the WTO has maintained an equilibrium between domestic constraints and international imperatives” (Moreno-Morales). As a developing nation, Mexico’s main challenges will be that of coping with the increasing innovations, technology and strong competition from its regional trade agreement partners (Canada and the United States). Some potential solutions could be that of restructuring Mexico’s agricultural institutions, providing better administration and economic support to its farmers, among others.
Moreover, Mexico must expect real and potential changes in the long term. Short term, Mexico could possibly ameliorate and gradually lower its agricultural deficit through the support of the private sector (e.g. banks) by providing grants and loans at low interest rates and achievable requirements. Furthermore, institutions such as the World Trade Organization should increase the monitoring and surveillance to countries within free trade agreements (such as NAFTA) to ensure that there is fair competition and thus prevent situations like dumping (as previously