North American Free Trade Agreement (NAFTA)

North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement is an agreement signed by Canada, Mexico, and the United States, creating a trilateral rules-based trade bloc in North America. The agreement came into force on January 1, 1994.Following diplomatic negotiations dating back to 1986 among the three nations, the leaders met in San Antonio, Texas, on December 17, 1992, to sign NAFTA. U.S. President George H. W. Bush, Canadian Prime Minister Brian Mulroney and Mexican President Carlos Salinas, each responsible for spearheading and promoting the agreement, ceremonially signed it. The signed agreement then needed to be authorized by each nation's legislative or parliamentary branch.

The benefits of NAFTA are eliminations of the barriers to trade and investment between the U.S., Canada and Mexico; benefits such as the elimination of taxes and tariffs are obtained, and has generated a trade surplus for Mexico.

Mexico has one big disadvantage, since most domestic enterprises do not have the technology to deal with outside companies whose human capital and recurrent use of technology reduces costs and increases productivity. The competition entry for local businesses, which have low productivity will remain difficult in the competitive market in the medium and long term, this is another disadvantage of NAFTA.

Free Trade Agreement Mexico, Colombia and Venezuela (G • 3)

The Treaty of the Group of Three (G-3), composed of Mexico, Colombia and Venezuela, was signed June 13, 1994 and entered into force on January 1, 1995. In 2006, the president of Venezuela, Hugo Chavez announced his retirement from G-3. Under the agreement the Group of Three, tariffs are fully phased out over a period of 10 years. The agreement of the Group of Three contains provisions not only tariffs but refers to issues such as intellectual property rights, services, government procurement, and investments.

The advantages are that the G-3 provides opportunities to increase mutual trade, diversifying exports, expanded markets allow the use of economies of scale and there are investment opportunities from Mexican companies in Colombia.

The disadvantages are that the new industrial productions affect the country as a result of the Mexican competition, exclusion of most agricultural products and differences in program development and efficiency of economic sectors in member countries.

Free Trade Agreement México - Costa Rica

The Free Trade Agreement between Mexico and Costa Rica was signed in 1994 and entered into force on January 1, 1995. This was the first free trade agreement between Mexico and the Central American country and turn 1st FTA signed Costa Rica. The treaty Mexico-Costa Rica was the first to be signed after NAFTA, so it is based on the

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