Which Is A True Statement About The North American Free Trade Agreement (Nafta) (1 Point)
U.S. Department of Commerce. Bureau of Census, foreign trade statistics. “New data updates 2005.” Available at www.census.gov/foreign-trade/statistics/. Appeal on April 17, 2006. NAFTA was supplemented by two other regulations: the North American Environmental Cooperation Agreement (NAAEC) and the North American Agreement on Labour Cooperation (NAALC). These tangential agreements should prevent companies from moving to other countries in order to use lower wages, more moderate health and safety rules and more flexible environmental rules. Since NAFTA was adopted, U.S. trade interests have often expressed very satisfaction with the agreement. Trade has grown strongly between the three NAFTA nations, but this increase in trade activity has led to growing trade deficits for both the United States with Canada and Mexico-;d the United States imports more from Mexico and Canada than it exports to these trading partners.
Critics of the agreement argue that NAFTA is at least partly responsible for these trade deficits and the striking job losses in U.S. manufacturing over the past decade. But before NAFTA, manufacturing jobs were starting to shrink. The NAFTA debate continues. Many critics of NAFTA saw the agreement as a radical experiment developed by influential multinationals who wanted to increase their profits at the expense of ordinary citizens of the countries concerned. Opposition groups argued that the horizontal rules imposed by nafta could undermine local governments by preventing them from enacting laws or regulations to protect the public interest. Critics also argued that the treaty would lead to a significant deterioration in environmental and health standards, promote privatization and deregulation of essential public services, and supplant family farmers in the signatory countries. Through NAFTA, the three signatories agreed to remove barriers to trade between them. By removing tariffs, NAFTA has increased investment opportunities. Fourth, NAFTA has put in place trade dispute resolution procedures. The parties would begin a formal discussion, followed by a discussion at a meeting of the Free Trade Committee, if necessary.
If the disagreement has not been resolved, a panel has considered the dispute. The trial helped all parties avoid costly prosecutions in local courts and helped them interpret THE complex NAFTA rules and procedures. These commercial disputes also applied to investors.