Question

On January 1, 1994, "NAFTA" went into effect. A. Identify what the term "NAFTA" stands for. B. Explain the purpose of NAFTA. C. Identify ONE reason why people support NAFTA and ONE reason people criticize NAFTA.

Answer 1

A- The North American Free Trade Agreement (NAFTA) is a free trade treaty agreement between the United States, Canada and Mexico and modeled on the existing free trade agreement between Canada and the United States, in turn inspired by the European Union model.

B- The main feature of NAFTA was the progressive elimination of all tariff barriers among the member countries.

C- Some argue that this treaty for regional trade in North America benefited the Mexican economy and helped face the competition posed by Japan and the European Union. However, others argue that Canada and Mexico became "colonies" of the US, and that, as a consequence of NAFTA, poverty increased in Mexico and aggravated unemployment in the US. Making the dollar the only currency in commercial transactions between the NAFTA partners implied serious resistance on the part of Mexican society and even by certain sectors of the government where there was fear of the loss of Mexican national identity.