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The North American Free Trade Agreement and Its Effect on Mexico NAFTA The North American Free Trade Agreement or NAFTA as it is commonly referred to which went into effect on January 1 1981 is a pact made between the three countries that make up North America Those three countries are Canada The United States of America and Mexico NAFTA states that these countries will help or assist each other in bringing goods and services between the borders of the three trade territories It also states that it shall try to enforce the intellectual property rights of the countries and territories that are helped by the North American Free Trade Agreement Many opinions from the Mexican side of the agreement feel that the enforcement of the intellectual property rights is only stated to better that of the United Sates Since the intellectual property rights basically states that patents or ideas are free of competition Which brings American companies in an estimated 61 billion dollars Mexican writer Noam Chomsky believes that the North American F ree Trade Agreement is only used to better the United States and that NAFTA itself is a failure but supporters call NAFTA a success and want it to expand across Latin America US Trade Representative Mickey Kantor calls it a win-win situation for everyone Although Many analysts say its too early to judge the North American Free Trade Agreements impact on the United States and Mexicos trade in part because many of its provisions have yet to take effect While some tariffs and non-tariff barriers were eliminated immediately others phase out gradually through 2008 The trade agreement hasnt effected Mexico as of late because soon after the trade agreement took affect the Mexican pesos value took a plunge This greatly slowed the speed of trade between Mexico and the other countries involved in the North American Free Trade Agreement Not even the negative talk towards NAFTA has
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