NAFTA: Benefits, Challenges, and the Gravity Model
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Features of MRTA
In the best cases, RTAs can serve as catalysts of deeper trade liberalization, focal points of inter-state cooperation, incubators of new WTO+1 trade rules, drivers of Foreign Direct Investment (FDI), and testing grounds for mechanisms to adjust to a more open trading environment.
Challenges of NAFTA
First, the business of shipping goods across borders needs an overhaul. Crossing from Mexico to the United States, waiting times are far too long; much of the infrastructure is antiquated; railway and haulage crews still change over at the border. Measures to allow the pre-clearance of goods before they reach the frontier are held up by America’s needless insistence that its customs agents should be allowed to carry guns, against... Continue reading "NAFTA: Benefits, Challenges, and the Gravity Model" »