NAFTA - is the North American Free Trade, which is an agreement between countries such as America, Canada and Mexico.On the territory of these states has been formed area of the single market.The agreement was signed between states its head in 1994.In accordance with the terms of the countries belonging to the Association have committed themselves in the next decade and completely eliminate customs and passport barriers.Also, agreements were reached on the establishment of rules for the formation of fair competition and the creation of necessary conditions for the free movement of services and capital.
Legal aspects
Legally NAFTA - a modernized US-Canadian Free Trade Agreement that was signed in 1988.If we consider an agreement between the two countries as a political phenomenon, it appears in the format of America's response to the European integration process, including in education, which took place in 1992.
NAFTA model supports the orientation of the European Union in terms of economic integration.The difference is the lack of political commitment to the formation of supranational bodies.This is due to differentiation of advanced countries: America and Canada are highly developed regions, and Mexico - is an actively developing area.NAFTA is significantly different from the number of EU countries, but it far exceeds not only in terms of GDP, but in terms of population.It can be concluded that it is the NAFTA - is the world's largest economic union.
What are the prospects for cooperation opened up?
NAFTA member countries through cooperation to intensify trade and economic relations, thus not only opened up new ways of development, there was a whole series of restrictions.America is partially transferred to the territory of Mexico, industrial production started to import a wide range of goods from that country at a lower price in comparison with imports of similar products from America.
parallel increased activity in the US labor market as overflow capacity in Mexico.Intensified the problem of deflation.For Mexico, opened the door to the markets of the United States and other developed countries, the volume of foreign investment increased, including lending to the state's economy.
With regard to economic dividends, they are for developing countries to have a one-sided character.Enrichment felt only the elite.A harmonious union of all the structure of the blended Canada.She managed to avoid large-scale de-industrialization with increasing industrial exports.The primary role of Canada was to act as an intermediary in relations between the United States and Latin American countries.
What is included in the notion of NAFTA?
The exclusive economic zone is essentially a set of arrangements, which applies not only to services and investment, but also encompasses the union of economically developed countries.The provisions of agreements on business in North America include:
- access to markets investments.
- Guarantee.
- services and intellectual property rights.
- Government procurement.
- measures to comply with the standards.
- Entrance for businessmen.
- conflict resolution.
obligations of the participating countries
exclusive economic zone imposed on member countries to certain restrictions.So, America, Canada and Mexico are obliged to keep their national tariffs in terms of trade with third countries.
Approved by the free circulation of goods after a transitional period of 10 years (sometimes 15 years) in the area of economic union.The rule applies to goods that are identified to be released in the United States, Mexico and Canada.The agreement aims to improve the conditions of trade in services, setting up a mechanism of mutual investment.
The agreement has reservations about the temporary restoration of protection for certain industries that have suffered losses as a result of the import of certain categories of goods.NAFTA countries, the list of which is given above, must follow certain exceptions to the general regime of free economic relations.
Exceptions
Against the background of the creation of a free trade zone, there are moments that do not comply with the agreement.Thus, within the association NAFTA (North American Free Trade Area) continue to apply the following standards:
- Mexico reserved the right to impose restrictions on foreign activity in the oil sector.
- Canada has the right to restrict access to certain segments of information that have some importance in the cultural aspect.This broadcasting and production of films, publication of books and the production of records.
- US retained the right to support an optimal level of domestic prices, the right to conservation procurement systems in the agricultural sector.
Specificity elimination of duties
All products in the framework of cooperation are divided into three categories.This industry group (with the exception of textile products), agricultural and textile artist with clothes inclusive.For each category of products peculiar to your individual schedule of tariff reductions.It should be said about the complete removal of tariffs for different groups of products.In the long term goal of unification of NAFTA puts far more significant.Within 5-15 years it is planned to abolish most of the duties.
Investment activity within the association and other
the Joint NAFTA country whose members listed above, there are 5 of the dominant principles of the protection of foreign investors and their capital.It:
- absence of any discrimination in the investor sector.
- complete elimination of the requirements of both the investors and their deposits.
- Free movement of any cash flows that are directly related to the investment.
- Expropriation (though under international law).Open
- right to apply to the judiciary of international rank in the presence of violations of the provisions of the Agreement.
agreement provides for liability for the violation of the rights of ownership of patents, trademarks and intellectual property.The current legislation, which allows you to define the area of production of the commodity.Thus, the product is assigned to the State in whose territory he was subjected to the largest processing (calculated as a percentage).
Goals association
NAFTA - a large-scale regional free trade area with the population within 406 million people and a combined GDP of $ 10.3 trillion.Formation tandem due to a number of parameters and a list of objectives that are intended to achieve.By the assumptions of the association are as follows:
- composition NAFTA due to the geographical proximity of the member states.Moreover, the economies of both would be mutually reinforcing.This factor led to the structure of associations and NAFTA.The headquarters of the coalition is not one.They are three: in Ottawa, Washington and Mexico City.
- between states have always existed close economic relations and trade relations, there is an expansion of industrial cooperation.
- in Canada and Mexico, the number of American enterprises systematically increased.In America, the thriving Canadian multinationals.
- actively strengthening the position of not only the EU but also Japan.
quite clear for what reasons was formed by the union of NAFTA.Participating countries, signing a contract, in addition to the effectiveness of the partnership and has pursued a number of objectives.This intensification of trade through the elimination of any restriction, to create a healthy competitive environment to attract investments, to ensure a high level of protection of intellectual property.The union does not cease to grow and today is constantly expanding its sphere of influence.
