Global Trade Report: NAFTA's Policies, Procedures, and Challenges

This report provides a detailed analysis of global trade, with a specific focus on the North American Free Trade Agreement (NAFTA). The introduction highlights the significance of trade unions and their influence on trade development, emphasizing the importance of understanding trade barriers. The background section offers a brief trade history of the NAFTA region, outlining its role in economic growth for Canada, the United States, and Mexico. The report then describes NAFTA's trade policies and procedures, including tariff removals and the elimination of non-tariff barriers. A critical review addresses the barriers and challenges of implementing these policies, such as skill development and government involvement. The report concludes with recommendations for policy improvements and a summary of the key findings, emphasizing the need for continuous innovation and employee skill enhancement. The reference list includes various sources used in the analysis.

Running head: Global Trade
Global Trade
Name of the student
Course name:
Course ID:

1
Global Trade
Table of Contents
Introduction......................................................................................................................................3
Background- Brief trade history of the country/region...................................................................3
Description of trade policies and procedure....................................................................................4
Critical review- barriers and challenges of the implementation......................................................6
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................7
Reference list...................................................................................................................................8

2
Global Trade
Introduction
The main aim of this study is to highlight the importance of the trade unions and how
they are having influence on the trade development in order to understand the characteristics,
patterns and nature of the international trade can be better understand. It is important for the
development of understanding of trade barriers and how the international trades are shaping up
through the use of NAFTA or North American Free Trade Agreement. The main aim of the
study is to identify the trade policies and procedures that actually related with the development
of trade and commerce in the international border.
Background- Brief trade history of the country/region
The NAFTA is one of the biggest free trade zone that came in to existence in the year of
1994 and since then the zone is providing strong foundations for the economic growth for the
countries like Canada, the United States, and Mexico. Looking at the current situation NAFTA
covers a North American economy covering about US$17 trillion. However, the NAFTA is the
home to about 444.1 million. Among the total level of population living within NAFTA 33.3
million of whom live in Canada, 304.1 million in the United States, and 106.7 million in Mexico
(Naftanow.Org". 2012). Through the participation of NAFTA for the above mentioned countries,
the development of Canada trade is prospering mainly because of the international trade. On the
other hand, the composition of US economy exports is mainly composed by computer goods and
services and mainly the IT products and services. This is also true for the economy of Mexico as
the trade liberalization has increased the flow of international trade and commerce mainly the
import and export has increased through the improvement that has been made through the trade
liberalization.

3
Global Trade
However, there is also strong presence of inward investment in the countries that are
included in the NAFTA. It is important in the sense that in order to increase the resource
u8tilisation, the economies will be mainly willing to indulge the development better
improvement in the trade and commerce. Through the initiative that NAFTA has taken the
countries will obviously develop their resources. (Naftanow.Org". 2012) About 240 billion of
investments took place in Canada, 229.8 billion of investments took place in the economy of US
and about 156 billion of investments took place in Mexico. The amount of the investment that
took place is increasing the economic growth that is happening within the country
(Naftanow.Org". 2012).
Description of trade policies and procedure
The development of trade policies is important in the sense that it will definitely increase
the involvement of NAFTA. The trade policies in the form of openness in the trade and
commerce and countries that are mentioned under the NAFTA is definitely going to identify the
factors that is mostly helping the development of the resources in the form of better development
of the economy. Through the improvement in the investment, the economy is preferring to be
more open and they will be looking for the outward promotion strategies that has enabled the
development of the economy. All the above mentioned economies will be moving forward to
indulge the development of better innovations in the improvement. Economies like US, Mexico
and Canada are looking to increase the investment. In order to increase the improvement in the
business it is important to increase the efficiency NAFTA brought in some changes in the trade
policies.

4
Global Trade
Tariff
The main aim of the NAFTA is to implement removal of tariff on the goods and services
that are being traded among the countries like US, Mexico and Canada. According to U.S.-
Canada Free Trade Agreement (CFTA), the development of trade free business and trade free
imports and exports will be rolled out among these two countries. Prior to the establishment of
NAFTA the Mexican tariff rate was within the 0-25% and that was about 2.5 times the US tariff
rate. Without the existence of NAFTA, the international trade rules would have increased the
tariff rate of Mexico high as 50% (NAFTA Key Provisions". 2019). It has been claimed that
within 6 years, most of the US goods will enter the economy of Mexico that too tax free. The
products will be in the form of light trucks, most auto parts, and paper products.
Elimination of non-tariff barriers
It is important to identify the non-tariff barriers that is helping the US and Mexican
economy to grow and they will be able to highlight the factors that is actually helping these two
economies to indulge in the development of better economy, on the other hand, through the
innovation in the removal of non-tariff barriers will be able to incorporate them in the business.
Through the minimization of the non-tariff barriers will be helpful for the development of
international trade and commerce that will increase the resource utilization through the
development of tariffs. This process will be helping in the development of cheap and cost trading
that will be allowing the countries will be willing to increase their export and imports so that the
innovations in the business will be crucial in the sense that they will be able to increase the
innovation in the business. Through the incorporation of better development of business through
NAFTA will be willing to highlight the production and will be able to increase their efficiency
level.

5
Global Trade
Critical review- barriers and challenges of the implementation
It is important to identify the challenges of implementation of certain policies that has
given the country under NAFTA will be willing to identify the challenges. Minimizing the
barriers will be the main point so that the development of the trade policies will be crucial for the
development of better innovation. Through the NAFTA, the investment within the economy will
be able to incorporate the demand and supply push effects. Through the incorporation of the
better involvement of the government will be crucial in the sense that it will be allowing the
government to bring the necessary changes in the policies that has increased the overall
efficiency of the employees. It is important for the government to indulge in the innovations that
will be looking for the development of the resources. It is important in the sense that it will be
important to increase better implementation of the policies. Through the development of better
investment the countries like Mexico, Canada and US will be willing to indulge the development
of the economic growth. Barriers will be to identify the development of skills and potentiality
that the employees will be having. It is important to maximize the skills and potentiality that the
employees will be to indulge the development of economy. It is important for them to hold the
amount of investment that will be pertaining through the development of the business. In order to
increase the involvement of the government purchase they should be willing to embrace the
development of infrastructures.
On the other hand, innovation in the production technologies through the openness of
trade will be able to identify the pros and cons that will be willing to identify the impacts that
will be having in the development of the business. It is important to bring in continuous
innovations that will allow the incorporation of better policies that will easily increase the
indulgence of improvement.

6
Global Trade

7
Global Trade
Recommendations
It is important for the incorporation of the business. It is important for the company and
the country will be able to incorporate better policies that will be able to increase the
development of the development of capability of the employees so that the employees will be
fitting in the economy. This is important in the sense that it will be highlighting the incorporation
of the development of the business. It is important for the country will be willing to identify the
impact of the improvement in the business. In order to increase the development of employees
skill. On the other hand, through the introduction of better policy enforcement will allow the
incorporation in the enforcement of the policy.
Conclusion
The study is concluding the fact that in order to increase the development of the of the
business it is important to follow certain rules and regulations that most of the government will
be looking to enter into the development of the of the resources and highlighting the
incorporation of the business will bring in better development of business will easily look into
the matter of better involvement of the innovation of technologies will not only bring the
development of the innovation. It is important for the study to highlight the incorporation of
better technologies will bring the improvement in the business.

8
Global Trade
Reference list
"NAFTA Key Provisions". 2019. Iatp.Org. Accessed April 11 2019.
https://www.iatp.org/sites/default/files/NAFTA_Key_Provisions.htm.
Arvis, Jean-François, Lauri Ojala, Christina Wiederer, Ben Shepherd, Anasuya Raj, Karlygash
Dairabayeva, and Tuomas Kiiski. Connecting to Compete 2018: Trade Logistics in the Global
Economy. World Bank, 2018.
Banks, Natalie Clare, Dean Ronald Paini, Kirsty Louise Bayliss, and Michael Hodda. "The role
of global trade and transport network topology in the human‐mediated dispersal of alien
species." Ecology letters 18, no. 2 (2015): 188-199.
Boz, Emine, Gita Gopinath, and Mikkel Plagborg-Møller. Global trade and the dollar. No.
w23988. National Bureau of Economic Research, 2017.
Boz, Emine, Matthieu Bussière, and Clément Marsilli. "Recent slowdown in global trade:
Cyclical or structural." The global trade slowdown: A new normal (2015): 55-70.
Constantinescu, Cristina, Aaditya Mattoo, and Michele Ruta. The global trade slowdown:
cyclical or structural?. The World Bank, 2015.
Eaton, Jonathan, Samuel Kortum, Brent Neiman, and John Romalis. "Trade and the global
recession." American Economic Review 106, no. 11 (2016): 3401-38.
Freund, Caroline, Michael Ferrantino, Maryla Maliszewska, and Michele Ruta. "Impacts on
global trade and income of current trade disputes." Macroeconomics, Trade Investment (MTI)
Practice Notes, July 2 (2018).
North American Free Trade Agreement | Fast Facts | Naftanow.Org". 2012. Naftanow.Org.
Accessed April 11 2019. http://www.naftanow.org/facts/default_

9
Global Trade
Pérez-Oviedo, Wilson, John Cajas-Guijarro, and María Cristina Vallejo. "South America: Trade
and integration in the new global trade network." In Regionalism, Development and the Post-
Commodities Boom in South America, pp. 121-145. Palgrave Macmillan, Cham, 2018.
Seebens, Hanno, Franz Essl, Wayne Dawson, Nicol Fuentes, Dietmar Moser, Jan Pergl, Petr
Pyšek et al. "Global trade will accelerate plant invasions in emerging economies under climate
change." Global Change Biology 21, no. 11 (2015): 4128-4140.
Wu, Mark. "The China, Inc. Challenge to Global Trade Governance." Harv. Int'l LJ 57 (2016):
261.