Government Procurement: NAFTA gives U.S. suppliers immediate and growing access to Mexico`s $19 billion supply market, including state-controlled companies (parastatals) such as PEMEX, the Mexican oil company and cfe, Mexico`s electricity company. World Trade Organization: The WTO has been conducting international trade negotiations among its members since 1995. A 2007 study showed that NAFTA had “a considerable influence on the volume of international trade, but a modest effect on prices and prosperity.” [62] Ancillary agreements: Ancillary agreements on import increases, environment and labour have been concluded. The amendments establish North American Environmental and Labour Commissions to strengthen enforcement in these two areas in the country. The North American Free Trade Agreement (NAFTA) was a tripartite agreement negotiated by the governments of Canada, Mexico and the United States, which entered into force in January 1994. NAFTA eliminated most tariffs on goods traded between the three countries, with a focus on trade liberalization in the agriculture, textile and automotive sectors. The agreement also aimed to protect intellectual property, establish dispute settlement mechanisms, and implement labour and environmental protection measures through ancillary agreements. The advantage of these bilateral or regional agreements is that they promote greater trade between the contracting parties. They can also accelerate the liberalization of world trade when multilateral negotiations are in difficulty.

Recalcitrant countries that are excluded from bilateral agreements and therefore do not participate in the enhancement of the resulting trade may then be led to join them and remove their own barriers to trade. Proponents of these agreements have called this process “competitive liberalization,” which challenges countries to remove trade barriers in order to keep pace with other countries. Thus, shortly after the implementation of NAFTA, the EU embarked on a free trade agreement with Mexico and finally signed it to ensure that European products do not suffer any competitive disadvantage in the Mexican market as a result of NAFTA. As a result, many countries have moved away from the multilateral process to bilateral or regional trade agreements. One such agreement is the North American Free Trade Agreement (NAFTA), which entered into force in January 1994. Under NAFTA, the United States, Canada and Mexico agreed to eliminate all tariffs on trade in goods and reduce restrictions on trade in services and foreign investment for a decade. The United States also has bilateral agreements with Israel, Jordan, Singapore, and Australia and is negotiating bilateral or regional trade agreements with countries in Latin America, Asia and the Pacific. The European Union has also concluded free trade agreements with other countries around the world. Much of the debate among policymakers has focused on how to mitigate the negative effects of agreements such as NAFTA, including whether to compensate workers who lose their jobs or to offer retraining programs to facilitate their transition to new sectors. . .

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