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ABSTRACT
The paper analyzes export competitiveness characterized using selected trade indicators of NAFTA Member countries. The main goal of the research is to indentify international trade performance and export competitiveness among the NAFTA member states. Results of this research indicate international competitiveness detected by measuring, analysis of the countries' GDP and trade openness, recommendations and proposals in order to realize a higher level of international trade. The methodology of this research includes implementation of different trade performance indicators like intra-industry trade, balance of trade, export as a share of GDP and other relevant indicators.
Keywords: NAFTA Member countries, export, import, export competitiveness
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1.INTRODUCTION
North American Free Trade Agreement (NAFTA) represents trilateral trade block of USA, Canada and Mexico. The main reason for establishing NAFTA, was to expand trade between the countries by eliminating all trade and investment barriers and to make these countries more competitive in the global marketplace. On January 1, 1994 the North American Free Trade Agreement (NAFTA) between USA, Canada and Mexico entered into force and incorporated the prior Canada-US Free Trade Agreement (CUSFTA) (Romalis, 2007). CUSFTA Agreement was signed 1988 and went into effect in year 1989. The move to bring in Mexico was much more controversial due to when in 1982 Mexico faced a debt crisis problem, during which time the country's foreign debt exceeded their ability to pay it back. While NAFTA is not a sophisticated integration like the European Union, it includes provisions that go beyond mere elimination of tariffs and quantitative trade restrictions, including disciplines on the regulation of investment, transportation and financial services, intellectual property, government purchasing, competition policy, and the temporary entry of business persons (Hufbauer and Schott, 1993). While implementing tariff removal mechanisms, the NAFTA agreement siginificantly increased trade between Canada, Mexico, and USA. An expansion of NAFTA trade stimulated the export performance of vital industries like agriculture, automotive, and services - health care and financial services. According to Novalinkmx (2018) foreign direct investment tripled. U.S. businesses invested for $452 billion in Mexico and Canada. On the other hand, companies in Mexico and Canada invested $240.2 billion in the United States that helped U.S. manufacturing, insurance, and banking companies. Another positive effect was stronger growth which has provided...