North American Free Trade Agreement | Discussion

1.) During the recent presidential campaign, Donald J. Trump publicly attacked North American Free Trade Agreement (NAFTA), calling it the worth deal every closed by a President of the United States. One might assume that this statement may be somewhat exaggerated. That is why it may be useful to carefully examine this agreement in order to identify the impact that it had on all the countries involved. The evidence shows that NAFTA had a moderately positive impact on the economies of the countries involved.

As the name suggests, NAFTA is a trade agreement between three North American countries: the United States, Canada, and Mexico. It has been active since January 1, 1994 (Curtis and Sydor 34). The agreement created a trilateral trade bloc which envisioned that the majority of trade barriers between the countries will be eliminated. There also have been some provisions made regarding the protection of the environment. The resulting free trade zone is one of the biggest in the world.

Speaking of the reasons why NAFTA was formed one might mention several. To begin with, it may have been the logical development of the trend of trade liberalization that the United States has been promoting. In addition to that, it was planned that the removal of trade barriers will enable companies to invest in the production in other two countries and thus enhance its business. A significant portion of attention was paid to the protection of intellectual property: the signing of NAFTA contributed to the security of these rights.

The impact of NAFTA is subject to intense debate among the politicians and the economists. The majority of them agrees that the overall impact has been moderately positive. In each of the countries who signed it, GDP and the overall quality of life increased since 1994. Canada may have been least affected by the agreement, except for the agricultural flows that increased. NAFTA contributed to the development of maquiladoras in Mexico which improve the economy of the country, yet took some jobs from the United States. It is generally suggested that the elimination of tariffs lead to improvement of lives of ordinary citizens in all three countries.

As one can easily see, NAFTA is an important trade agreement that serves as a landmark of development of the economies of the three countries involved. It was formed to create a unified trade block to promote free trade. The overall impact of it has been moderately positive.

2.) Chapter 3 focused on the development of business in the global environment. It showed that there is a system that is formed by countries all over the world that trade with each other, trying to achieve maximum benefits from this trade. However, this environment is not chaotic: there are rule and regulations that the countries must adhere to. The major question with this regard focuses on the role of trade barriers and whether they should be eliminated or used by the countries as protection.

What really surprised me is the theory of comparative advantages. Prior to it, I thought that every country could can and should produce everything on its own without trading with others for economic safety. However, now I see that it is more beneficial to trade some goods for others.

Personally, I will no longer see the world of global trade as before. From now on I understand that trade is much more than selling goods: it reflects the nature of the economy of the country and shapes the way in which it interacts with others. That is why I will develop a broader understanding of the global economy, not seeing it as a zero-sum game for the countries.

Works cited

Curtis, John M., and Aaron Sydor. NAFTA. Foreign Affairs and International Trade Canada, 2006.

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: November 26, 2021]

"The terms offer and acceptance.", 17 May 2016.

[Accessed: November 26, 2021] (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: November 26, 2021]

"The terms offer and acceptance.", 17 May 2016

[Accessed: November 26, 2021]

"The terms offer and acceptance.", 17 May 2016

[Accessed: November 26, 2021]

"The terms offer and acceptance.", 17 May 2016

[Accessed: November 26, 2021]

"The terms offer and acceptance.", 17 May 2016

[Accessed: November 26, 2021]
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