The strong arm of bureaucracy is a powerful force in the world of international shipping. To protect domestic businesses, a country will often try to control the trade entering and leaving from across the border. In our globalized world, however, trade agreements have enabled prosperity in countries who have decided to reach beyond borders and build economies that reach across continents.
Recently, the North American Free-Trade Agreement, or NAFTA, celebrated its 20th birthday as the law governing international trade among Canada, Mexico and the United States. Supporters and opponents of this measure, which was designed to speed the process of trade across the borders of these countries, were vehement in their language when this bill was first passed. But where do we stand now, two decades after its implementation.
According to this article published by The Economist, all three countries have been experiencing stronger economic days due to the new practices put in place by NAFTA. Although the US and Canada both improved, Mexico has been a clear winner from the arrangement. Trade between America and Mexico increased by 506% between the years 1993 and 2012, much more than the 279% increase in trade between America and non-NAFTA countries during the same time span.
The glut of American jobs and workers being whisked away to Canada and America hasn’t materialized as feared, and in fact there are some interesting new supply chains developing for American products. For example, about 25 percent of Canadian imports, and 40 percent of Mexican imports, are composed of goods originally manufactured in the United States.
Looking forward, some experts are calling for NAFTA to be revamped so that Caribbean nations can join, building a group of American countries similar to the European Union, or EU. Also, using the NAFTA agreement so that countries can work in concert to create better international trade policies instead of working alone.
Western New York companies know they can trust Speed Global Services to get their products anywhere they need to go. Let us handle the international crossing so you can focus on your business.
Post by Kim Muncie