INTERNATIONAL PERSPECTIVE
Free Trade and the Price Elasticity of Demand: Nestlé Yogurt
The 1990s were characterized by an explosion of free trade agreements among important trading partners. The Europe 1992 plane virtually eliminated trade barriers, and goods flowed freely and without tariffs from one European country to another. Increasing standardization of products in these market further reduced trading barriers. In 1994, the North American Free Trade Agreement (NAFTA) was ratified by the United States, Canada, and Mexico, and the General Agreement on Tariffs and Trade (GATT) was implemented, leading to a worldwide reduction in tariff and other trade barriers. In 2001, the United States launched the Doha Round of free trade talks that continue to the present.