A Comprehensive Analysis of NAFTA and COMESA
Dinah Roles
Liberty University
Abstract
The research in the paper contains information regarding NAFTA and COMESA. They are both free trade agreements that were implemented to promote the free flow of goods amongst members. The free trade agreements lifts tariffs on goods and services. They both seem to be effective economically but there are some drawback. Pertaining to NAFTA, there has been substantial manufacturing job loss to Mexico because of the cheap labor. NAFTA has also been cited as a contributor to poor environmental governance and violate of labor rights. COMESA is plagued by conflict, lack of transportation infrastructure, and technological capabilities needed to promote a thriving business environment. There is also a trade deficit issue in Africa. In order to improve NAFTA, there needs to be independent entities that over watch policies and procedures. In order to improve trade relations in Africa, there needs to be strong leadership that does not seek bribes or does not have the best interest of the people.
A Comprehensive Analysis of NAFTA and COMESA
The process of globalization has gained a great influence on the worldwide economic, social and cultural stage national as well as regionally and evidently leaving its mark all over the globe (Liu & Ornelas, 2014). The economic phenomenon in the free market era known as free trade agreements have taken president. The purpose of free trade agreements is to stimulate trade among countries by eliminating the normal tariffs, quotas, special fees and taxes that exist during importing and exporting (Liu & Ornelas, 2014). The goal is to promote transactions and facilitate more business amongst the countries on a comparative economic advantages that will allow both sides to mutually benefit (Liu & Ornelas, 2014). Free trade agreements give companies the ability to compete in the global marketplace...