Which Of The Following Countries Is A Part Of The North American Free Trade Agreement (Nafta)

While the obstacles to regional cooperation in North America were real, this did not prevent political leaders from recognizing the benefits of integration and going beyond their borders. The first step was taken by Ronald Reagan in the United States, who proposed a “North American agreement” to facilitate regional cooperation. As president, Reagan kept his campaign promise and declared that a common North American market was a future goal. In the early 1980s, and while Mexico remained far away, Canada and the United States came closer and signed a series of agreements that culminated in the Canada-U.S. Free Trade Agreement in 1988. At this crucial moment, Mexico indicated that it was ready to join the negotiations, and NAFTA talks have begun. The NAFTA Secretariat is responsible for taking steps to resolve disputes between businesses. If the parties are not satisfied with the outcome of the proceedings, the Secretariat shall establish a panel to examine the dispute and ensure that the parties find an amicable solution. After the election of President Trump in 2016, support for NAFTA became highly polarized between Republicans and Democrats. Donald Trump has made negative comments about NAFTA, calling it “the worst trade deal ever approved in this country.” [159] Republican support for NAFTA increased from 43% in 2008 to 34% in 2017. Meanwhile, Democratic support for NAFTA rose from 41 percent in 2008 to 71 percent in 2017.

[160] The three countries may wish to revise the NAFTA investment chapter to reflect more recent agreements. U.S. free trade agreements, including NAFTA, and bilateral investment treaties (TIF) maintain the most important investor protection that reflects U.S. law, such as. B governments` obligations to provide investors with non-discriminatory treatment, a minimum standard of treatment, and protection against unpaid expropriation.98 Since NAFTA, investment chapters have been included in free trade agreements and the United States. The model BIT has been amended to clarify certain provisions and to reaffirm in general the right of a government to regulate in order to monitor environmental, health or safety outcomes. Investment chapters, particularly the Investor-State Dispute Settlement (ISDS) provision, have been increasingly discussed in recent U.S. free trade agreements. NAFTA was the first free trade agreement to include ISDS, which allows investors to arbitrate against a host government at a binding arbitration to resolve disputes over alleged violations of a host government`s investment obligations.

Another important effect of NAFTA was the model it offered to the rest of Latin America. Currently, Central America, Chile and the Caribbean have signed free trade agreements with NAFTA. This offers the poorest countries of Latin America an important development path and support for national democratization. Access to larger markets and the opening up of economic and political institutions will also promote development. However, without the development of basic infrastructure, many Latin American countries will still struggle to compete. This suggests that successful regional integration for the poorest countries requires development funds similar to those provided by the EU to countries in Southern and Eastern Europe. If Mexican President Vincente Fox`s goal of a common market is to be achieved, fiscal transfers must precede the free movement of goods, services and people to make it politically acceptable. .