Abstract

Taking NAFTA as a model for other free trade agreements to follow - thanks to its supplemental agreements on labor laws and the environment - this article discusses its impact on the US tourism industry and on its relationships with Canada and Mexico. Benefits will include enhanced product quality and competitiveness, further growth and an increase in the number of jobs available. Globalization of US tourism services will be promoted through guarantees that service companies will receive national treatment in all countries, a ban on discrimination against service firms which invest in Mexico and the possibility for US financial firms to operate fully in Mexico. It is argued that Mexico will benefit from the foreign investment thus stimulated through increased employment and a rise in the standard of living.

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