Retaliatory tariffs Mexico placed under NAFTA Research Paper - 1

Retaliatory tariffs Mexico placed low NAFTA - Research Paper ExampleMajor impact has been on agricultural calling relation between USA and Mexico. According to job statistics Mexico exports 80% of its agricultural exports to USA, and since the implementation of NAFTA, agricultural exports between USA and Mexico deal increased by 9% every year, thus asserting that NAFTA has benefited both the nations (Agricultural trade, n.d.). The retaliatory tariffs that Mexico implemented on various imported goods from USA continued from March 2009 to October 2011. These tariffs were imposed when USA failed to meet the trucking victuals of NAFTA. Mexico initiated these tariffs keeping within the structure of dispute resolution process of NAFTA. In July 2011, a formal conformity was signed that made decisions regarding implementation of trucking provisions of NAFTA (Zahniser, et al, 2011, p.2).NAFTA came into force on January 1, 1994. It created a trilateral trading relation between USA, Canad a and Mexico creating the largest single market of goods and services with these neighbouring nations as the members. The customer base of this treaty was virtually 440 million. The objective was to remove all tariffs on goods that are traded between the three nations thus creating a put out trade area by the year 2009. The estimated annual valuation of traded goods between these nations was $ 14 trillion. (Ferrell, et al, 2011, p.98)NAFTA implementation has brought big changes in the economic and trading relations between USA and Mexico and all these have had great trade impacts in USA. When NAFTA was signed by the three nations, the USA-Canada free trade agreement was already in normal for five years. There were amalgamations of many industries in USA and Canada. Mexico in the pre-NAFTA era was following a constitution to produce goods that would substitute imported goods from the USA. One such example was Mexican automotive industry which was command by many decrees pronoun ced