NAFTA is an organization that plays a limited role in the determination of real and relatives’ wages and this has had a small impact on job losses given the size of the Canada economy. NAFTA also deals with issues related to labor, the environment, dispute settlement systems, agriculture, the automotive sector, energy, on Mexico US migration and also the recommendation of North American economic integration. NAFTA deals with countries such as US, Canada, Mexico whereby it helps the profession workers and job seekers and the economy of this countries.
In these countries, NAFTA was conceded to have a positive effect by generating jobs and attracting foreign investment. NAFTA help those countries by addressing the primary issues generating the most debate like labor, environment whereby environment concern was involved around the belief of these countries.
However, NAFTA conclude that the trade pacts can simultaneously generate economic gains from increased trade, avoid the dismantling of existing environment protections regimes and improve the environmental standard. Also NAFTA addressed policy issues that are important to the country partners, this policy issues are conceded in general about trade policy and for trade policy practitioners interested in the scholarly analysis of a pact that remains controversial even today.
NAFTA and Canada government
In Canada, the labor related issues were less important than issues related to the erosion of the safety net. Given the generous social programs to which Canadians are accustomed, the fear was that increased integration with the US would lead to deterioration in benefits received from health care, social welfare programs and unemployment benefits which will lead to economic degradation. NAFTA suggested that the concern over safety net issue were overblown but point to the existence of a “brain drain” from Canada to the US. Canada has the major produce of tobacco and has very large plantations, therefore labor related issues were of greater concern in Canada rather than US or Mexico.
The dismal labor conditions there led most analysts to believe that NAFTA could only have a positive effect on job creating and preventing government to stop tobacco consumption because of it would lead to jobless of citizens and economic decline. The dispute settlement systems in the NAFTA agreement, were this system provide an important mechanism through which dispute of agriculture may be dissolved. As a result, Canada wanted to ensure that the gains made with the US free trade agreement was maintained in the trilateral agreement because it helps them a lot inn exporting tobacco and importing sugar from Mexico, thus this trade agreement system was provided by NAFTA, where it used the agreement so that to prevent the Canada government to burn the consumption of tobacco because it’s a commercial crop, used for export and economic growth for this three countries.
On the tobacco issues on free trade, NAFTA has protected the interest of foreign investors with the continuing goal of globalizing international investment. NAFTA chapter 11 gives all the citizens and foreign investors to have a right of plain packing tobacco products because it has benefits on increasing trade to the economy, and also the government of Canada has got some fears of interrupting with the trade agreement, whereby Canada has been working with its NAFTA partners to clarify certain provisions which would give future tribunals a better understanding of chapter11s obligations. Chapter 11 of NAFTA has for some become the focus of a campaign against globalization, which they believe emphasizes trade rules on environment agreement (Colgan, 2005).
Canada has to improve its security measures on trade which will protect against disruption I US-Canada a trade. A matter of, growing for firms already producing in Canada, as well as considering additional investments from various agricultural produce, such as tobacco which has major impact on economy. Canada can only benefit from the rapid resolution of long standing trade disputes if they rely on this policy of NAFTA. NAFTA is more concern that chapter 11 will create a regulatory chill; in the government will be reluctant to introduce regulation in the public interest because of the potential expense of compensation.
Colgan, J. (2005). The promised and peril of international trade. Broadview press.