In December of 1992 President Salinas of the Government of the United Mexican State, President Bush of the Government of the United States, and Prime Minister Brian Mulroney of the Government of Canada signed the North American Free Trade Agreement (NAFTA); however, it was not ratified and fully effective until January 1, 1994. NAFTA, which established a free trade area among the aforementioned nations, consistent with the previously instituted General Agreement on Tariffs and Trade (GATT), eliminates tariffs on goods produced by the signatory nations by 2005, removes most barriers to cross-border investment and to the movement of goods and services and improves intellectual property protection. The specific objectives contained in NAFTA are as follows:a)Eliminate barriers to trade in, and facilitate the cross border movement of goods and services between the territories of the Partiesb)Promote conditions of fair competition in the free trade areac)Increase substantially investment opportunity in their territoriesd)Provide adequate and effective protection and enforcement of intellectual property rights in each Party’s territorye)Create effective procedures for the implementation and application of this Agreement, and for its joint administration and the resolution of disputesf)Establishes a framework for further trilateral, regional, and multilateral cooperation to expand and enhance the benefits of the Agreement.Proponents of NAFTA claim that the accord will increase trade throughout the Americas, moderate product prices, and creates new jobs in all three countries. Critics claim just as adamantly that the proposed accord will degrade blue-collar employment wages and environment standards throughout North America. Moreover, they claim that jobs will move to Mexico due in part to the wide disparity in labor market regulations and wages existing between the United States, Canada and Mexico. In addition to worker displacement...
