Answer to Question 1
Answer: Canada, Mexico, and the United States are part of a trade bloc known as NAFTAthe North Atlantic Free Trade Agreement. According to the Office of the United States Trade Representative, formed on January 1, 1994, NAFTA called for the elimination of duties and the phasing out of tariffs over a period of 14 years. Trade restrictions were removed under NAFTA from such industries as motor vehicles and automotive parts, computers, textiles, and agriculture. In addition, the treaty also delineated the removal of investment restrictions between the three countries. As a result of supplemental agreements signed in 1993, worker and environmental protection provisions were added.
The labor side of NAFTA is the North American Agreement on Labor Cooperation (NAALC). This was created in order to promote cooperation between trade unions and social organizations in order to champion improved labor conditions. Although there has definitely been a convergence of labor standards in North America as a result of NAALC, there has not been a convergence in employment, productivity, or salary trends. Overall, NAFTA is reported as having been good for Mexico, which saw a fall in poverty rates and a rise in real income as a result of the trade agreement.
Answer to Question 2
Answer: NAFTA (North American Free Trade Agreement)
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