Regional Economic Integration is a treaty between nations to minimize and ultimately eliminate tariff and non-tariff obstacles to the free movement of services, goods, or inputs of production. The economic justification for these agreements is that when free commerce is restricted, it delays the development of the country’s goals and financial prosperity. Furthermore, the bargain reduces consumer excess, which is bad for the economy. The political argument is that these agreements may help countries create excellent relationships, which can help lessen conflict tensions and potential wars. Countries become more reliant on and linked to one another.
One example of a trade agreement is the new North America Free Trade Agreement (NAFTA). According to the Council on Foreign Relationships (2020.), “NAFTA was a landmark trade deal between Canada, Mexico, and the United States that took effect in 1994” (para. 1). This agreement contributed to an increase in trade and economic cooperation among the three nations, but it was condemned in the United States for leading to job losses and outsourcing. The most recent event significant for NAFTA is the criticism from President Trump, who argued that this is the worst deal for the American people that has been established in the recent decades (Council on Foreign Relationships, 2020). The article that was used to gain insight into NAFTA is by Council on Foreign Relationships, which is a credible organization concerned with the US’s relationships with the other states. The article describes the basics of this agreement and the main issues that the politicians have highlighted with it in recent years. Additionally, this article mentions the underlying reasons for establishing NAFTA, which was the desire to integrate Mexico into the regional economic relationships.
Reference
Council on Foreign Relationships. (2020). NAFTA and the USMCA: Weighing the impact of North American trade.