Objectives of NAFTA
NAFTA is an abbreviation that is used in reference to North American Free Trade Agreement. The agreement was signed between three states in the North American region; US, Canada and Mexico. The main reason for the formation of this international agreement was to foster trading activities among the nations that are party to it. In order to see to it that this achievement is realized, the agreement is tasked with several responsibilities. The objectives are clearly outlined in the first chapter of the agreement.
The main objective of NAFTA is the establishment of a free trade area as stipulated by the agreement. Trade is considered to be free when goods and services are able to move into the markets of the partners without limitations. Besides, the prices of the goods and services are also to be determined by the supply and demand in the markets. This is the kind of environment that NAFTA aims to create for the nations that are party to the agreement.
NAFTA’s other objective is the promotion of conditions for fair competition in the free trade area. Through the formation of NAFTA, businesses across the region have been empowered to produce high quality products for the market in the region as well as across its borders. The agreement has ensured that businesses established in the region are able to gain unrestricted access to materials, investment capital and technologies. With this, they are able to deliver competitive products to the global trading platform.
NAFTA is tasked with the provision of adequate and effective protection and enforcement of intellectual property rights in the territories of the signatories to the agreement. The agreement has got measures aimed at solving disputes that may arise as a result of ownership of intellectual property rights. With this, investors and creators of various projects are able to enjoy the benefits of their work without being prejudiced or taken advantage of by others.
Another objective of NAFTA is to substantially enhance investment opportunities in the countries that are signatories to the agreement. As mentioned earlier on in this paper, NAFTA ensures that businesses in the region have access to investment capital, technologies and materials. As a result of this, the businesses in the area are well equipped to register significant growth. Currently, partners in the agreement exchange an estimated $2.6 billion worth of goods daily which is an indication of how far the agreement has gone towards enhancing investment opportunities.
North American Free Trade Agreement’s other objective is creating effective procedures for ensuring that this agreement is implemented and applied effectively. These procedures are created through a joint discussion between the representatives of the partners at various levels of administration.
NAFTA is also tasked with the establishment of a framework that can enhance further trilateral, multilateral or regional cooperation for the expansion and enhancement of the benefits of this agreement. It is of great importance to note that there are rules of origin that stipulate the procedures for accomplishing each of the objectives.
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