Question

Economic integration agreements are nice for the insiders, such as the U.S. Mexico and Canada with...

Economic integration agreements are nice for the insiders, such as the U.S. Mexico and Canada with , but they stand in the way of WTO progress because they violate basic guidelines of the WTO. Agree or disagree

Homework Answers

Answer #1

"Disagree"

WTO allows the member nations to have a free trade deal or preferential trade agreements but as per the rules of the WTO, the nations in the free trade deals like NAFTA cannot impose any extra duty on the outside nation.

For example, if the US and Mexico are trading Cars under NAFTA they can't put an extra duty on cars from Japan. The trade with Japan should go as usual. (Can't put Japan in a disadvantaged stage by increasing duty on cars brought in form Japan.)

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