II. History
U.S./Canada Free Trade Agreement signed on January 2, 1988
Impacts on the Agreement:
Elimination of duties
Direct investment in the other country made easier
Easier to market services in the other country
Provides dispute resolution mechanism
USCFTA not without controversy
USCFTA consistent with GATTIII. General Reasons for Free Trade Agreements
- 1. Limits on GATT
- 2. Allows for specialization in terms of comparative advantage
- 3. Increases potential exports for all parties
IV. Enter Mexico (NAFTA)
Political Change
Skyrocketing Trade