In: Economics
Explain the United States' integration into regional unions.
The USA has entered into the
regional union with the country Canada and Mexico to form North
Atlantic Free Trade Agreement, named as NAFTA. It has formed a free
trade agreement among these three countries where the trade
barriers have been eliminated and these nations has used each
other’s market for growth & development. For example, Mexico
has exported agricultural products to the USA and Canada, whereas
the USA and Canada has exported processed goods to the country of
Mexico. There are a huge number of Mexican workers, working in
other two countries. Though it has caused some harm to the US labor
force also in the short run in agriculture and manufacturing
sectors.
Another regional integration is Trans-Tasman partnership among more
than 10 countries including the USA. Though, this regional trade
agreement is not yet ratified and the USA under the Trump
administration has vowed not to go for it. So, this regional
integration. Besides, there is the bilateral integration of the USA
with countries like China, India and other nations in the
world.