The Canada-US Free Trade Agreement
To answer this question, you must consult the NAFTA Secretariat website (www.nafta-sec-alena.org).
NAFTA, to which Canada, the United States and Mexico belong, took effect in 1994. It is understood that this agreement adheres to the philosophy defined by the Canada-US Free Trade Agreement (CUSFTA) that involved Canada and the US.
State six important objectives of NAFTA; these could also have been defined in CUSFTA.
Sample Solution
The six important objectives of NAFTA, which have also been defined in CUSFTA are: 1. Eliminating barriers to trade and investment between the three countries; 2. Promoting conditions of fair competition in the free-trade area; 3. Increasing investment opportunities among members; 4. Enhancing access to goods and services within the free-trade area; 5. Facilitating cross-border movement of business people for temporary purposes; and 6. Establishing effective administration and enforcement procedures (NAFTA Secretariat, 2020). These objectives were designed to foster economic growth by providing an environment that reduces or eliminates trade restrictions such as tariffs, fees and other non-tariff measures (Mansfield et al., 2004). The agreement was thus intended to benefit all three countries economically while encouraging businesses from each country to expand their operations into new markets or better serve existing ones under equal terms with reduced risk associated with investing abroad (Baldwin et al., 2017).
