North American Free Trade Agreement

North American Free Trade Agreement
Name
Institution
Date
North American Free Trade Agreement
Trade has been an important activity since the beginning of civilization. Countries always seek for ways of buying and selling goods at reasonable prices, which is one of the primary reasons for the establishment of The North American Free Trade Agreement (NAFTA). Although there has been controversy over its benefits and costs, many economists agree that NAFTA has greatly benefited its members by lowering trade barriers and expanding trade in all the participating countries (Faux et al., 2001).
NAFTA is a trade agreement signed by three countries namely the United States, Canada and Mexico in 1994 to define the economic, social, and political development of the three countries and the North American region. The agreement is one of the largest free trade agreement involving over 400 million people, resulting to 11 trillion dollars annually (Faux et al., 2001). It aimed at building new and more secure trading relationships, developing an open access to the three markets.
NAFTA was supposed to bring several benefits to various sectors of the three countries; consumers were supposed to reap benefits from the efficient distribution of resources, paying less for the g...