Effects Of North American Free Trade Agreement Research Articles

¿Cómo afectan proagro y el tlcan el mercado de maíz en una región de autoconsumo? El caso de la huasteca hidalguense

El Programa de Apoyos al Campo (Proagro, antes Procampo) y la liberación comercial acordada en el Tratado de Libre Comercio de América del Norte (TLCAN) son las políticas más importantes que afectan al sector agrícola de México. Con el objetivo de medir los efectos de Proagro y del TLCAN sobre el mercado de maíz (Zea mays L.) en la Huasteca hidalguense, se estimó un modelo de ecuaciones simultáneas conformado por una ecuación de oferta, una de demanda, dos de transmisión de precios y una identidad de saldo; se usaron series de tiempo de 1994 a 2017. Los resultados indican que el Proagro es un instrumento de política agrícola eficaz, porque incentiva la producción de maíz en la Huasteca hidalguense; por lo tanto, se recomienda continuar con este subsidio e incluso aumentarlo para que el efecto positivo sea mayor. Asimismo, los efectos del TLCAN resultaron muy reducidos, porque la región produce maíz para autoconsumo.

The Impact of NAFTA on Australia’s Trade and the Implications of Preferential Trade

This article will be exploring and evaluating trade relations between Australia and The United States of America, with a particular focus on the effects of NAFTA (North American Free Trade agreement) on the amount of trade between these two countries. I used trade data available over a narrow span of several decades in order to create several tables that document the change in volume of trade between Australia and The United States in an attempt to demonstrate that NAFTA and Preferential Trade Agreements in general run contrary to the principles of free trade that the World Trade organization espouses. By showing a strong relation between a downturn in the demand for Australian exports and the timing of the NAFTA’s signing, I show that Preferential Trade Agreements such as NAFTA and more recently, the Trans-Pacific Partnership may be leading to protectionist regional blocs.

The effects of NAFTA on US trade, jobs, and investment, 1993–2013

Between 1993 and 2013, the US trade deficit with Mexico and Canada increased from $17.0 to $177.2 billion, displacing 851 700 US jobs. All of the net jobs displaced were due to growing trade deficits with Mexico. The number of US jobs displaced by trade deficits with Canada declined slightly between 1993 and 2013. Prominent economists and US government officials predicted that the North American Free Trade Agreement (NAFTA) would lead to growing trade surpluses with Mexico and that hundreds of thousands of jobs would be gained. The evidence shows that the predicted surpluses in the wake of NAFTA's enactment in 1994 did not materialize. Growing trade deficits and job displacement, especially between the United States and Mexico, were the result of a surge in outsourcing of production by US and other foreign investors. The rise in outsourcing was fueled, in turn, by a surge in foreign direct investment into Mexico, which increased by more than 150 percent in the post-NAFTA period.

NAFTA and its effects on the USA: revisited

North American Free Trade Agreement (NAFTA) was created to help to improve the economic well being of the people in the member countries. NAFTA did improve the trade balance and foreign direct investment of Mexico. NAFTA also improved the trade balance and employment rate in Canada. However, the effect of NAFTA on the USA is unclear, i.e. it does not show a negative or positive effect on the US economy. Specifically, it is hard to establish a direct relationship on the employment rate or wage rate in the USA due to NAFTA. Therefore, more study is needed to determine whether the USA has lost jobs or lowered the wage rate in the USA.

Economic analysis of US textile production activities under the North American Free Trade Agreement

This economic analysis investigates the US textile industry's output supply and input demand pattern under the influence of North American Free Trade Agreement (NAFTA) and determines the significance of the agreement on the industry. This analysis employs the normalized restricted translog profit model as an analytical tool and introduces a time dummy variable in the model to distinguish the pre- and post-NAFTA years. The outcome of analysis shows the significant but negative effect of NAFTA on the industry's profit performance in the early years of the agreement, probably due to intensified import competition, fall of real output prices, and numerous mill closings. NAFTA, however, is identified as less significant than variable input prices of labor, material, and electricity. The elasticity estimates show the dominant role of maintenance and capital expenditures, followed by textile output and variable input prices in order, in determining the industry's output supply and input demand. Overall, NAFTA is identified as a short-term solution to the US textile industry's fundamental problems of high labor costs and declining price competitiveness.

The J-curve and NAFTA: evidence from commodity trade between the US and Mexico

The North American Free Trade Agreement (NAFTA) was predicted to have a substantial impact on the US–Mexico trade, especially on specific importing and exporting industries. In this article, we use annual industry-level export and import data from 1962 to 2004 to discern both the short- and long-run effects of real exchange-rate depreciation on the Mexico–US trade balance, as well as the effects of NAFTA on this trade. We find that peso depreciation has a positive long-run effect on 24 of 102 Mexican industries and a negative short-run effect on 19 of 102 industries. Only a small fraction (7 of 102 industries) show any support for the J-curve hypothesis. NAFTA has had a significant effect on a significant number of the industries, however.

The Effect of NAFTA on Energy and Environmental Efficiency in Mexico

Prior to Mexico's entry to the North American Free Trade Agreement (NAFTA), predictions of the consequent impact on the environment in that country ranged from the dire to very optimistic. This article investigates NAFTA's outcomes in terms of energy use and the emission of atmospheric pollutants. Specifically, has entry into NAFTA led to a convergence or divergence in indicators of emissions, environmental efficiency, and emissions‐specific technology in Mexico, the United States, and Canada? A battery of tests is applied to these indicators for energy use and carbon, sulfur, and NOx emissions in the three countries. The results show that the extreme predictions of the outcomes of NAFTA have not materialized. Rather, trends that were already present before the introduction of NAFTA continue and, in some cases, improve post‐NAFTA, but not yet in a dramatic way. There is strong evidence of convergence across the three countries toward a lower intensity of energy use and emissions per unit of GDP. Although intensity is rising initially for some variables in Mexico, it eventually begins to fall post‐NAFTA. Per capita emissions of sulfur and NOx also show convergence, but this is not the case for energy and carbon, and the latter variables also drift moderately upwards. The state of technology in energy efficiency and sulfur abatement is improving in all countries, although there is little, if any, sign of convergence and NAFTA has no effect on the rate of technology diffusion. However, total energy use and carbon emissions increase both pre‐ and post‐NAFTA and total NOx emissions increase in Mexico. Only total sulfur emissions are stable and falling in all three NAFTA partners.

The Effects of NAFTA on Antidumping and Countervailing Duty Activity

Treatment of unfair trade laws has become an important topic in negotiations on preferential trading areas. Recent preferential trading areas involving the United States (U.S.), one of the most significant users of these laws, have established special bi-national dispute settlement panels to arbitrate disagreements. Using a panel database of U.S. antidumping and countervailing duty activity from 1980 through 2000, the article examines whether the use of dispute settlement panels has reduced such activity between the United States and its North American Free Trade Agreement (NAFTA) partners. The analysis finds little evidence for any effect, calling into question the effectiveness of dispute settlement panels in reducing unfair trade law activity.

Tracking NAFTA's Shadow 10 Years on: Introduction to the Symposium

The North American Free Trade Agreement (NAFTA) is arguably the first case study of what may be expected from the increasing number of preferential trade agreements involving both developed and developing economies. Ten years after the treaty's inception, it is time to assess how its outcomes compare with initial expectations. The articles in this symposium issue provide insights into the effects of NAFTA on economic geography, trade, wages and migration, and foreign investment from Mexico's perspective. The contributions paint a complex post-NAFTA reality characterized by persistent intra-bloc trade barriers, interregional inequality within Mexico, labor market outcomes that seem closely tied to migration patterns and international trade and investment, and foreign investment flows that appear weakly related to trade agreements.

NAFTA and the Geography of North American Trade

The author estimates the effects of the North American Free Trade Agreement (NAFTA) on the geographic pattern of North American trade. Specifically, he looks at the effects of NAFTA on aggregate trade flows between subnational regions within North America and between North American regions and the non-NAFTA world.

Rate of Return of Stock Index and the NAFTA Process: An Analysis of North America and ASEAN Financial Markets

This study analyzes the effect of the North American Free Trade Agreement (NAFTA) process on two major segments of the world economy. Specifically, daily stock index returns in the North American markets and the selected Association of South East Asian Nations (ASEAN) markets during the entire agreement process are employed to analyze several NAFTA related events and their effect on respective financial markets. Using an event‐study framework, dummy variable regression analysis reveals that the significance of the events on each county appears random in nature. Joint testing of events, however, shows that except for Singapore, the overall effect of NAFTA is significant on the stock index returns of all countries.

Nafta, the financial crisis, and multinational management in Mexico

AbstractThe North American Free Trade Agreement (NAFTA) joined Mexico, the United States, and Canada in a free trade and investment block. While NAFTA has generated considerable interest, much of the initial enthusiasm for the treaty has faded due to the Mexican financial crisis. To learn more about the effects of NAFTA and the crisis on multinational (MNC) strategy and operations, we conducted interviews at manufacturing firms in Mexico. Even with NAFTA, we found that significant restrictions remain that limit the strategies that MNCs can pursue. Also, only a limited number of MNCs have been seriously hurt by the financial crisis due to the risk management strategies these firms have adopted. We conclude with a discussion of the implications of this study for the effective management of MNC firms in Mexico.

EXPLORING THE NORTH AMERICAN FREE TRADE AGREEMENT: INITIAL REACTION FROM ASIA

As the North American Free Trade Agreement (NAFTA) is put into effect, Asian countries have shown growing concerns about the protectionist nature of the NAFTA. Key provisions of NAFTA which have potential negative impacts on Asian economies are examined. The economic analysis suggests that there will not be much, if any, trade or investment diversion effect of NAFTA upon Asian countries. The initial reaction to NAFTA from these countries supports this prediction.

Economic Implications of NAFTA for ASEAN Members: A Disaggregated Approach

As the United States is a critical trade and investment partner for the Association of South east Asian Nations (ASEAN) member countries, the North American Free Trade Agreement (NAFTA) is of significant concern to the region. Studies using computational general equi librium models and other economy-wide approaches to the economic implications of NAFTA generally show minor effects on non-partners, ASEAN countries included. However, these small effects on aggregate output could mask important sectoral effects on export industries deemed important to the economic development of individual ASEAN countries. This article takes a disaggregated approach to focus on NAFTA s potential trade diversion in sensitive and leading sectors of the ASEAN countries. It is found that significant trade and investment diversion will occur in a number of important sectors, in more traditional manufactured industries such as textiles and clothing, as well as in rapidly-growing sectors characterized by higher levels of technical sophistication such as transistor values and other electric com ponents. The possibility of investment diversion and other effects of NAFTA for ASEAN are also discussed, and policy options for ASEAN are explored.

Continental shift: free trade & the new North America

What will happen now that congress has approved the North American Free Trade Agreement (NAFTA)? In this book, William Orme Junior aims to set the record straight, puncturing various myths about NAFTA, created by both supporters and opponents of the agreement, and looks to the future of North America. Orme explains that the process of consolidating the North American trade area only begins with ratification of NAFTA, and he recommends that the countries of Central America and the Caribbean renegotiate their special relationships with the expanded North American bloc. He discusses such issues as the effects of NAFTA on South America, on Japanese investment in Mexico, and on questions of national sovereignty. Orme also shows why NAFTA is just the first step in the movement towards a North American common market (rather than one encompassing the Western hemisphere).

North American Free Trade and the European Situation Compared

The author analyzes and compares the trade situation in the European Community (EC) with the North American Free Trade Agreement (NAFTA). He finds that "while both the EC and NAFTA are designed to provide trade preferences to the member countries, the two groupings differ markedly in other respects. The Treaty of Rome, establishing what is now the EC, consciously used economic means to foster political cohesion in Western Europe; whereas, the NAFTA negotiations seek free trade rather than more comprehensive economic integration precisely to minimize political content. The EC contains many social provisions absent from the NAFTA discussions, the most important of which is the right of migration from one EC country to another." The effects of NAFTA on the economy of Mexico and on Mexican migration to the United States are also assessed.