The North American Free Trade Agreement (NAFTA) -- An Exposs

Abstract

Economic integration has become predominant in international business markets, due to its ability to facilitate the formation of trade relationships, as well as the achievement of greater economic development among participating nations. NAFTA is one of the popular examples of economic integration, and one of the most intricate international trade agreements ever negotiated between governments, designed to promote market liberalization and to encourage capital flows between member countries. Its establishment has been tainted by intense debate, along with a mixture of opinions concerning its purported impact on the economies of the three signatories to the agreement. Critics have cited varied concerns including those related to job losses, environmental issues, and immigration matters. However, advocates opined the numerous benefits that participant nations stood to gain in the form of foreign investment, improved efficiency, as well as reduced unemployment. The paper, based on previous literature, provides an account of the background of NAFTA, the provisions of the treaty agreement, in addition to some criticisms levelled against it, and some benefits that have accrued to member nations since its inauguration.