1.

Rules of origin and regional content The North American Free Trade Agreement (NAFTA) is a trilateral trade community in North America created by the governments of the United States, Canada, and Mexico. This agreement was signed in December 1993 by the leaders of the three countries Brian Mulroney of Canada, Carlos Salinas de Gortari of Mexico, and Bill Clinton of the United States. It is one of the most powerful, wide-reaching contracts in the world. 2. Special provisions The stated objectives of the NAFTA included elimination of barriers to trade in, and facilitation of the cross-border movement of goods and services between the territories of the Parties. They Benefits the importers by reduced or duty free goods. NAFTA countries will receive treatment equal to similar domestic products. Guarantees service providers of the three countries equal treatment in the NAFTA area, including the right to invest and the right to sell services across borders. The establisher five basic principles to protect foreign investors and their investment into the free trade area: (a) nondiscriminatory treatment, (b) freedom from performance requirements, (c) free transference of funds related to an investment, (d) expropriation only in conformity with international law, and (e) the right to seek international arbitration for a violation of the agreement's protections. The NAFTA Agreement contains special provisions for sensitive economic sectors, including agriculture, automotive products, energy, and textiles and apparel. The Agreement also created a Border Environment Cooperation Commission and a North American Development Bank. 3. Impact of international business NAFTA is one the most successful trade agreements in history and has contributed to significant increases in agricultural trade and investment. US two-way trade with Canada and Mexico exceeds US trade with the European Union and Japan combined. In fact, US trade more with Maxico in a month than trade with other countries in a year. US exports more to Mexico in a day than with Paraguay in a year. US exports more in a week with Canada than with Central America in a year.

After eighteen years, most tariffs have gone to zero, except for some very sensitive (mostly agricultural) goods that have limited protection.

Can make the exporter more competitive than other non-participating countries. 200% increase in trade among the 3 countries and benefits the importers by reduced or duty free goods.

It has negative impacts on farmers in Mexico who saw food prices fall based on cheap imports from U.S. agribusiness.

It has negative impacts on U.S. workers in manufacturing and assembly industries who lost their jobs and critics also argue that NAFTA has contributed to the rising levels of inequality in both the U.S. and Mexico.

4. Expansion NAFTA should Look Farther South. Chile, Argentina, and Uruguay are three deserving initial candidates for a broader trade agreement with North American nations because of their democratic governments, economic reforms, and current economic problems. Argentina, in particular, has trouble and recently negotiated a sizable loan from the International Monetary Fund to help finance payments on its foreign debt. Unemployment is also an alarming issue in Argentina and Uruguay. 5. Implications for corporate strategy NAFTA is one of the most successful treaties of the times of growth in trade in terms of imports, exports, GDP etc. But on the other hand, it is also responsible for causalities like loss of jobs, migration, rising level of inequality and many others. Thus its important that the treaty should be carried forward concerning about taking steps for the problems originated due to NAFTA, otherwise it will create inequality in many terms which can lead to bad conditions in future for all the three countries.