United States-Canada Free Trade Agreement

United States-Canada Free Trade Agreement

Introduction

The free market economic model walks freely against its global expansion. The invisible hand of Adam Smith is on the world as a phenomenon called globalization, which requires countries to join to face international competition. At this time, the struggle for markets is regional blocs, not by countries. The Free Trade Agreement of America North was signed on December 17, 1992 and entered into force on January 1, 1994. The main objective of FTA is to eliminate barriers to trade, promote conditions for a competition fair, increase opportunities for investment, provide adequate protection to rights of ownership intellectual, establish procedures for effective implementation of the Treaty and the settlement of disputes, as well as promote trilateral, regional and multilateral levels. For Canada, the U.S. economy is the largest by volume traded and geographical proximity.

The Treaty is a set of rules that the three countries agree to sell and buy products and services in North America, is called free trade because these rules define how and when you remove barriers to free flow of goods and services between the three nations, that is, how and when were eliminated permits, fees and licenses and particularly the rates and tariffs, i.e. the tax charged for importing a commodity. It is also an agreement creating mechanisms to resolve differences that always arise in trade relations between nations.

Discussion

United States and Canada confirmed their commitment to promote employment and economic growth in the region by expanding trade and investment opportunities. The Free Trade Agreement is very important to the new dynamics of world trade, led to the formation of economic blocs, pending negotiation to achieve symmetrical effects affecting more global market share. United States and Canada confirm their conviction that the Treaty will enhance the competitiveness of Canadian and American companies, without neglecting the protection of the environment. And reiterate the commitment to promote the sustainable development and protect, expand and make increasingly effective labour rights and improve the conditions of work in the two countries.

This treaty states in its guidelines negotiated tariff reductions for periods of relief for certain products and sectors. However, what really sought was to achieve legal certainty for the access of products in the partner countries. Like any other trade agreement existing extensive network, NAFTA should be understood as a process of economic relief containing measures to increase economic exchange between units of two or more countries.

For Canada, the free trade agreement was not just an economic and legal tool short term to create jobs, promote trade and attract investment, but also represented an important factor for modernization and integration in developed economies. When presented with the opportunity to negotiate a free trade agreement with the United States, it was thought that several economic sectors could benefit from comparative and competitive advantages.

The economies of both countries are integrated by the bilateral trade agreement between both the countries. Due to the geographic proximity and cultural and linguistic similarities, US and Canada are natural trading ...