Trading Blocs NAFTA Case Study Example | Topics and Well Written Essays - 1000 words

Trading Blocs NAFTA - Case Study Example Under the NAFTA, all non-tariff barriers to agricultural trade between the United States and Mexico were eliminated. In addition, many tariffs were eliminated immediately, with others being phased out over periods of 5 to 15 years. This allowed for an orderly adjustment to free trade with Mexico, with full implementation beginning January 1, 2008 (North American Free Trade Agreement (NAFTA), 2011). It should be noted that the elimination of non-tariff barriers would help free flow of goods and services between United States and Mexico. Same way free flow of goods and services are in place with Canada also. In short, these three countries are benefitted immensely because of the formation of NAFTA. Another major advantage of NAFTA is the increment of bargaining power of these countries in international market. These three countries are producing certain goods and services which are rare in other countries. Regional co-operation helps these countries to fix prices for their products in international market. In the absence of regional co-operation, these countries may compete each other international market which is not good for the interests of any of these countries. In short, NAFTA helps America, Mexico and Canada to work on a common platform to safeguard their interests. Increased cooperation between these countries may result in increased integration of this region under one umbrella. NAFTA created the world's largest free trade area, which now links 450 million people producing $17 trillion worth of goods and services.