Table of ContentsBenefits of GATTMajor NAFTA ControversiesImpact of the Most Controversial Issues on Canadian BusinessNAFTA is a free trade agreement North American exchange which includes three countries, the United States, Canada and Mexico. This agreement was formulated on January 1, 1994. The key elements of the agreement included the removal of tariffs, reduction of many non-tariff barriers, and it was among the major exchange agreements aimed at addressing foreign exchange administrations. It further incorporated a question settlement instrument for the reasonable and expeditious purposes of exchange debate. The General Agreement on Tariffs and Trade (GATT) was a legitimate agreement among many nations, the general rationale of which was to advance world trade by reducing or eliminating trade boundaries, e.g. customs duties or standards. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Should Not Be Banned"? Get the original essay As its prelude states, its motivation was "the considerable reduction of tariffs and other borders of trade and the end of trends, proportionally and » The GATT was signed by 23 countries in Geneva on October 30, 1947 and entered into force on January 1, 1948. Canada and the United States are among these 23 countries. Benefits of NAFTA Between 1993 and 2017, trade between the three countries quadrupled, from $297 billion to $1. 17 trillion. This has contributed to monetary development, social benefits and employment for each of the three nations. This also reduced costs for buyers. Lower tariffs have also reduced import prices. This reduced the risk of inflation and allowed the Federal Reserve to keep interest rates low. NAFTA also boosted economic growth and some of the sectors that benefited were agriculture, automobiles and services. Some other benefits were increased foreign direct investment (FDI) and intellectual property protected by NAFTA. It helped innovative companies by discouraging piracy. This has boosted FDI because companies know that international law will protect their rights. NAFTA reduced investors' risk by ensuring that they will benefit from the same legal rights as local investors. It also reduced government budget deficits by allowing more competition and lower-cost offerings. Advantages of GATT The advantages of GATT include being a step towards globalization with an imaginable increase in development, enabling sources of inputs and tariff advertisements, and giving opportunity to developing countries to apprehend new changes. For a long time, GATT reduced taxes. This helped the world trade 8 percent per year. By expanding trade, GATT has advanced world peace. In the 100 years before GATT, the number of wars was 10 times greater than in the 50 years after GATT. Main Controversies Related to NAFTA Four of the most vocal criticisms concern the loss of American jobs to Mexico, the loss of foreign direct investment (FDI) in the United States, no net income gain for the average American worker and illegal immigration from Mexico as a result of NAFTA. Mexico has benefited very little from NAFTA, as the country still experiences high unemployment, strong wage incongruities, and weak administrative indicators. When trade barriers are in place.