NAFTA customs is a complicated issue and one which many people do not fully understand.
NAFTA is the product of a natural progression to a global economy. It began with the General Agreement on Tariffs and Trade, continued with the Trade and Tariffs Act, and officially began with the Free Trade Agreement between Canada and the United States and a signed promise for such developments between Mexico and the United States only a year later. Once it was finally ratified in 1992, it enabled free movement, shipment, and trade between the United States, Canada, and Mexico.
NAFTA Customs
One of the primary alterations that NAFTA applies is the standardization of each country’s Customs. Verification, record keeping, and rules of origin are all determined by the NAFTA Secretariat to ensure that there are as few conflicts as possible. Ultimately, it was applied to make the exporting and importing process as well as travel more efficient.
Ramifications of NAFTA?
The problems surrounding NAFTA are economic and political in nature. It has been suggested that NAFTA is responsible for the loss of jobs in Canada and the United States as well as a reduction in wages and worker rights in Mexico. Furthermore, it has been asserted that the sovereignty of North American countries are now compromised in accordance to the accoutrements provided by NAFTA. These problems are all the result of exploitation by large corporations that NAFTA inadvertently made easier.
Issues associated with NAFTA include job loss, violations of NAFTA terms, and harm to the environment. The reason why these issues remain is because they remain unchecked by the proper authorities. Although they do not compromise the overall purpose and success of NAFTA, they should still be approached in the interest of the large pool of stakeholders related to these issues.
How Can One Benefit from NAFTA?
There are several steps to obtaining a Certificate of Origin, which is necessary to benefit from NAFTA provisions. This includes filling out various forms, compiling information, determining the Preference Criterion of the goods to be exported and imported, and filling out Form 434, Form 434A, and Form 446. Once the Certificate of Origin is procured, one also receives as Certificate of Origin marker to expedite the movement of goods and personnel.
Who is Included in NAFTA?
Countries included in NAFTA are Canada, the United States, and Mexico. Although Canada was reluctant to sign a free trade agreement with the United States, it was first to take steps to do so. Mexico was reportedly far more eager to sign such an agreement, but many posit that it was to Mexico’s disadvantage as much as it was to Mexico’s advantage. Overall, though, North America as a whole has reportedly benefitted from NAFTA.