By Gary Clyde Hufbauer
NAFTA entered into strength in 1994 after a sour Congressional debate. yet NAFTA in operation has proved no much less debatable than NAFTA earlier than ratification, for either supporters and rivals of exchange liberalization have brought up adventure with the contract to justify their positions. to supply a actual foundation for this ongoing debate, the authors evaluation NAFTA?€™s functionality over the 1st seven years, evaluating real adventure with either the pursuits of the agreement?€™s supporters and the costs of its critics. They then study destiny demanding situations and possibilities within the alternate and funding relationships one of the 3 associate nations and the wider implications for brand spanking new exchange projects during the hemisphere.
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Extra resources for NAFTA Revisited: Achievements and Challenges (Institute for International Economics) (Institute for International Economics)
Who would certify that they were being upheld? If standards are applied and enforced at the national level, how much exploitation is too much? Should the standards apply to all industries or only those that export? And what type of enforcement measures would best pro mote compliance? In a constructive vein, Elliott and Freeman (2003) suggest that a “market for standards” can be fostered in trade agreements, whereby developed-world consumers can be encouraged by labeling and other means to award higher value to goods that were manu factured or grown under demonstrably acceptable working and environmental conditions.
Consequently, the country remains highly dependent on Pemex revenues to finance government expenditures. 9 percent of GDP in 2003 (SHCP 2004, annex A). See Ramírez de la O (2004) for an accounting of Mexican finances that separates tax from nontax rather than oil from nonoil related revenue. In November 2004, the Mexican Congress approved a reform law; Mexican corporate income tax will gradually be reduced from a 33 percent statu tory rate in 2004 to 28 percent by 2007. While the corporate tax reforms are a step in the right direction, the Mexican budget still depends inordinately on Pemex revenues—leaving Pemex little financial capacity for new investment.
47 However, the growth was less pronounced than in mer chandise trade, and NAFTA reforms made a difference in only a few sec tors. For some services, notably tourism, barriers were already very low before the trade agreements were ratified. For others, such as trucking and maritime transport, the barriers were not only high but also almost imper vious to liberalization. Moreover, the number of NAFTA temporary work visas for professional workers was tiny, not enough to have much effect on the recorded flows of cross-border services income.
NAFTA Revisited: Achievements and Challenges (Institute for International Economics) (Institute for International Economics) by Gary Clyde Hufbauer