NAFTA Is Economic and Trade Term Paper

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S. poultry exports to Canada in 2003 are estimated at about $290 million, a 77-percent gain over the pre-NAFTA level." The dairy products have revealed positive trend, prior to the implementation of the Uruguay Round provisions the Canadian fluid milk sales was insignificant, "the execution of the Uruguay Round provisions one year after NAFTA saw Canada's import control regime switch from a scheme of import quotas to a trade free quota system, the switch over was responsible for the protection of the Canada's fluid milk production." The trade quotas were eliminated for fluid milk and dairy products, including yogurt, powdered whey, specialty creams, dairy spreads, ice cream and ice cream novelties, cheeses, butter and margarine. As per the quota elimination system, major provision of NAFTA, low duty rates were imposed on the imports, the imposition of the duty was "up to the limit, and to higher rates over the limit." Irrespective of the imposition of the "high tariff rates on over-quota volumes and the creation of certain value-added dairy products that were either excluded from the list of products to which a TRQ would apply or have been developed since the conversion from quotas to TRQs" (Teresa, 2002), the exports of dairy and dairy-containing products from United States to Canada have registered a phenomenal growth of 300%. According to analysts, the exports of such products from United States to Canada stood at USD 76 million in 1994, after eight years the exports rose to USD 255 million.

Conclusion: Light on Concerns

The Canada-U.S. Free Trade Agreement and NAFTA represented "the era of a supra-constitution, a limiting framework which not only binds Canada with its southern neighbors, but limits democracy at home by prioritizing and protecting market dominance and the rights of property holders and investors." The trade agreements in particular NAFTA has been key to the economic integration, "without proposing significant modifying structures of political governance, have argued that FTAs lead inevitably to customs unions, common markets and ultimately effective political unions" (Anne, 2003). Prior to the approval and promulgation of NAFTA, the analysts criticized the sluggish and dull approach of the Canadian government towards formation of economic and trade association with United States in a manner that both the country are able to facilitate and secure their national objective through mutual economic gain and easy trade transit. The analysts viewed that, "the Canadians don't understand what they signed; in twenty years, they will be sucked into the U.S. economy" (Teresa, 2002). The critics have warned that that implementation of NAFTA has able responsible for the creation of North American Common Market. The market research has transpired that the positive impact has been generated through the imposition of NAFTA, the agreement has undoubtedly offered American government with better opportunities, but has offered convenient trade to the Canadian government. The NAFTA is expected to result into the formation of single North American economy, "free trade tends towards a full customs union and economic union as a matter of internal logic" (Anne, 2003). The agreement is expected to place Canada under obligation to develop political and military coherence with United States. The NAFTA has developed great concerns at parallel irrespective of the gains and access to the particular goods, "the logic of the integration process unleashed by the agreement and its predecessor, the Canadian-U.S. Free Trade Agreement, poses new challenges for the citizens of Canada and a warning for other peoples contemplating whether to join a Free Trade Area of the Americas." The external political factors have resulted in complication of the bilateral relationship between U.S. And Canada, unfortunately NAFTA has failed to deliver and resolve the issues and concerns related to the political ideology and foreign policies of the respective countries. According to reports, "a multi-lateralist and pluralistic Canada is confronted with unilateralist, interventionist and aggressive neighbor, the super power is extremely sensitive and reactive towards real and alleged threats to its security and interests." The concerns related to the NAFTA are based upon the derived relation between the political differences and economic consequences, and the resolution of such concerns is possible through eradication of the "political autonomy and divergence" (Teresa, 2002).


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