North American Free Trade Agreement(Nafta)-About North American Free Trade Agreement(Nafta):
What is the North American Free Trade Agreement?
In 1989, the United States and Canada signed the "US-Canada Free Trade Agreement." After 14 months of negotiations, August 12, 1992, the United States, Canada and Mexico signed a trilateral free trade agreement - the North American Free Trade Agreement. January 1, 1994, the North American Free Trade Agreement came into effect. Agreement on the effective date of the decision from 15 years in the gradual elimination of trade barriers, implementation of the free flow of goods and services, to form a 360 million consumers with annual GDP than $ 6 trillion of the world's largest free trade bloc.
North American Free Trade Agreement The purpose of the Agreement on free trade area by expanding trade and investment opportunities, to promote the United States, Canada, Mexico Three of employment opportunities and economic growth, strengthen the three countries in the global market competitiveness. Since the North American Free Trade Agreement effective date, the United States, Canada and Mexico in the 15-year transition period, the abolition of all goods, services and investment of all tariff and non-tariff barriers. "North American Free Trade Agreement" is "North American Free Trade Agreement," the further expansion, breaking the traditional areas of trade liberalization to include trade in services, and go far greater pace of liberalization, to a certain extent, become the Uruguay Round negotiations "GATS" template.
North American Free Trade Agreement general provisions, in addition to Mexico's oil industry, Canada's cultural industries and the U.S. aviation and radio communications, the abolition of most sectors of the investment restrictions. The flow of white-collar workers will be relaxed, but immigration will continue to be limited. Agreement provides for a dispute arising from the implementation of regulations, promote the layoffs will be delivered by an independent panel consisting of solutions; if import large quantities of damage a country's domestic industry, will allow the country to re-impose some tariffs.
To 6 May 1993, the Canadian Parliament passed the North American Free Trade Agreement. In November, the United States, the Mexican Congress passed the North American Free Trade Agreement. In December, the U.S. president signed the North American Free Trade Agreement, so that became U.S. law.
In February 1995, opened the North American Development Bank, under the North American Free Trade Agreement, the Bank of the United States and Mexico by the government-funded support, mainly to finance environmental protection projects in border areas between the two countries.
November 18, 1996, in Ottawa, Canada and Chile signed a free trade agreement. The agreement will become Chile's eventual accession to "the North American Free Trade Agreement," the bridge. In June 1998, the North American Free Trade Agreement Commission for Environmental Cooperation Council of the 5th meeting in Merida, Yucatan, Mexico City, held the meeting lasted two days. Mexico, the United States and Canada, three environment ministers and members of the Council on Environmental Cooperation, attended by officials of the three countries issued a "joint program of action to protect the environment", emphasized in the open market, promote environmentally friendly trade and services, for environment, economy and trade between the three organic unity.
North American Free Trade Agreement - the main content
"North American Free Trade Agreement," the main rules on trade in services as follows:
1, the North American Free Trade Agreement / NAFTA-Services
The service sector, the North American Free Trade Agreement cover a wide range of services. Chapter 12, "cross-border trade in services" to establish cross-border trade in services designed to achieve the liberalization of the rules and principles of the framework. Using the North American Free Trade Agreement cited "negative list" approach to define their scope of application of the service sector, that is, if a service is not explicitly excluded from the scope of the agreement to adjust, then the service will automatically apply. The chapter clearly states the following services and activities does not apply to:
• financial services, energy or basic petrochemical and related services;• aviation services and support services (except for aircraft maintenance services and special air services);• cross-border labor trade, government procurement, government subsidies, conducted by the Government and members of law enforcement, income security, social welfare and national security-related activities.
As for the other departments, to allow members to different degrees, or all or part of the reservation. In addition, other chapters and appendices also in respect of telecommunications services, financial services, land transportation, professional services for specialized requirements. By listing "negative list" approach, NAFTA to North America to form a more open services market, many complex and highly controlled in the service sector has made great progress in liberalization, the liberalization of trade in services than the market multilateral negotiations on trade in services could have reached. In the U.S., Canada and Mexico, the United States, Canada made a number of services trade liberalization commitments and more, while in Mexico was more different. Mexico in many service sectors of services trade liberalization commitments, they also made a number of reservations, the reservations department are unconstrained basic telecommunications, air and sea transportation, government services.
Services provided on the way, the North American Free Trade Agreement completely covered the provision of services under the GATS four ways. Agreement, Chapter 12, "cross-border trade in services" includes a service for the production, distribution, marketing, sales, delivery, purchase, use, transport and services, payment and other factors, under GATS covers the way a "Cross-border supply" and the way two "consumption abroad." Chapter 11, "investment" for a variety of interests, including non-equity forms of investment, meaning broader than the corresponding definition under GATS, for the provision of services and investment activities (GATS under way three "commercial presence" .) Under GATS mode four "movement of natural persons" can be seen the corresponding provisions of Chapter XVI "merchant temporary entry."
2, the North American Free Trade Agreement / NAFTA-national treatment and MFN
Member States in the North American Free Trade Agreement enters into force or after the commencement of the period of time, to eliminate the principle of national treatment and MFN and contrary to the principle of freedom of trade measures to restrict services. Chapter 11, "investment", Chapter 12, "cross-border trade in services", Chapter 13, "telecommunications service", Chapter 14, "financial services" are provided for the principle of national treatment and MFN principles. Chapter XII is an example to illustrate. The principle of national treatment provisions of Chapter: Member States should treat each agreement service providers as their agreement to treat the other members of the service provider. On provincial and state-level measures, national treatment is to point to another member service provider agreements should be treated no less than the national, provincial or state of local service providers to provide treatment. MFN principle requires an agreement to treat another member country service provider agreement should not be less than any one country to the service provider to provide treatment. In addition, the chapter also provides for member states not to set up representative offices in the country, representative offices, branches and any form of business, as a member of another service provider agreement to provide services a prerequisite. Despite the commitment of Member States the principle of abolition of the above measures to restrict freedom of trade in services, but also explicitly allows Member States Chapter XII of certain services or service activities not given such treatment. This chapter lists the member states with the annex to the above principles can be made to retain the services or activities. However, the measures established for the new Member States must ensure that its agreement with the general obligations.
North American Free Trade Agreement requires Member States to comply with the provisions of the above principles, the provisions under GATS than worse. Agreement on the Member States to take or maintain measures inconsistent with these principles using the "negative list" in the manner prescribed, the department is not included in the list are to be implemented and measures the scope of liberalization. In financial services, land transportation services, investment, special air services, professional services and certain commercial services applicable to "prohibit rollback (Rollback)" the principle that all reservations or exceptions can only develop in the direction toward liberalization, but not more stringent.
3, the North American Free Trade Agreement / NAFTA-market access
North American Free Trade Agreement of the core principles of national treatment principle ensures the service provider from another Member State who will work with service providers in the Member State enjoy the same treatment. This provision enables service providers to enter another country in the services market, with a wider range of service delivery options. Chapter 12, "cross-border trade in services" also provides a "non-discriminatory quantitative restrictions", requiring each member to limit in a particular industry, the number of service providers and non-discriminatory measures or activities stipulates that any other agreement Member States may request consultation on these measures as well as the liberalization of these restrictive measures and cancellation of negotiations. Can be seen, the agreement on market access go far greater pace than GATS.
4, the North American Free Trade Agreement / NAFTA-the principle of transparency
The region nearly all services (except to make reservations) the relevant sections of the Agreement are subject to constraints, therefore, Member States can not, as in the GATS system is not listed as a department can hide their restrictive measures. Moreover, there is a general agreement requirements (Section 1802): Each Member shall ensure that its agreement with the relevant laws, regulations, procedures and administrative rules published in a timely manner or otherwise disclosed. In addition, GATS Article 3 and Article 4 of the obligation is similar to section 1801 also has "contact points" (contact points) of the request.
5, the North American Free Trade Agreement / NAFTA-license and certificate
NAFTA Chapter XII declared that a member of the other members of the national licensing and certification requirements, should not constitute unnecessary barriers to trade in services. Member of the licensing and certification requirements and approval should be based on objective and open standards to guarantee quality of services provided is limited, and should not add unnecessarily harsh burden, which constitutes a covered service limitations. The agreement also provides for mutual recognition of licenses and proof of mechanism, but no obligation on member states a license issued to another member to be recognized. Once the member countries agreed to such recognition, the member shall be given to other members of the service providers the opportunity to produce a certificate. In addition, the agreement with a special attachment for professional service providers (particularly lawyers and civil construction industry) to provide for licensing and certification. The annex provides the license and certificate application process, and the establishment of commonly accepted professional standards and to regulate the temporary license, and restrictions on foreign legal consultancy services for foreign engineers license and the temporary restrictions. In this regard, the Agreement also provides for foreign providers of professional services is only made to the host country of nationality or permanent residence permit is issued and that the measures, Member States shall, within two years after the implementation of the Agreement shall be canceled, or another member of the States may retain or set the appropriate requirements and regulations.
6, the North American Free Trade Agreement / NAFTA-Denial of Benefits
If the Party had confirmed that a service is provided by an enterprise of another Party, but all of the companies or nationals of non-Parties under the control of, and in the territory of either Party are no substantive business activities, then The Party can refuse to give the enterprise agreement Chapter XI, XII of interest. As for the "substantial business activities" of criteria, depending upon each case. The terms on the one hand to prevent the so-called "shell companies" use agreements benefit from the mechanism, the other member states can make their own foreign policy on the exercise of the rights of non-approved countries having diplomatic relations or economic mechanisms of state-owned enterprises tried to deny agreement under interests.
7, the North American Free Trade Agreement / NAFTA-monopoly industries and service providers
Monopolies and state enterprises for service providers, the North American Free Trade Agreement, the Agreement provides:• Do not take measures inconsistent with agreement obligations;• monopoly in the purchase or provide services, must only act in accordance with commercial considerations;• For service providers of other Parties shall not be given discrimination;• Do not abuse monopoly, directly or indirectly (through its parent company, subsidiaries or other affiliates) in the non-monopoly on the market to take unfair competition.
These provisions than GATS Article 8 is more stringent.
8, the North American Free Trade Agreement NAFTA / - Government Procurement
NAFTA for each member of the federal government departments, agencies and enterprises engaged in federal government procurement requirements of the specific binding discipline for another member of the service provider to open a majority of members of the government procurement market. Government procurement rules imposed by the service sector range to be expanded to include some of the transit trade in services beyond the control of services such as computer services, engineering consulting, construction, etc.
9, the North American Free Trade Agreement / NAFTA-dispute settlement mechanism
There are no special NAFTA dispute settlement mechanism of trade in services, trade in services and other types of disputes, the same applies to the dispute settlement mechanism. Agreement, the center of the body that is appointed by the national ministers or cabinet-level officials of the Trade Commission, responsible for managing the implementation of the Agreement, the Agreement address the application and interpretation of any dispute. Dispute resolution through the following: consultation, Trade Commission of mediation, conciliation or other means, initiate group litigation.
The difference is that with the GATS, the parties to resolve disputes, including disputes between not only, but also investors or service providers and the dispute between the parties. It is noteworthy that, when a dispute in the GATT and NAFTA can be resolved when the institutions, NAFTA provisions complained of could choose one. If the third member to the same litigation referred to another body, the two countries can negotiate lawsuit seeking choose the same institution. If you fail to reach agreement, the dispute panel hearing is usually borne by the agreement.
10, the North American Free Trade Agreement / NAFTA-telecommunications services
Agreement, Chapter 13, "Communication Services" specifically to regulate telecommunications services, is NAFTA Chapter "approved", Chapter 11, "investment", Chapter 12, "cross-border provision of services," the relevant provisions in the field of communications services specific. The chapter called on Member States of the public network services should be "reasonable" and "non-discriminatory" conditions of doing business using the Internet to businesses and individuals, including value-added telecommunications services and inter-enterprise communications network. Specifically refers to the requirement that Member States should allow the use of internal communications between the company hired a private network, allowing companies to install the terminal in the public network or other device to a private line and public network connectivity, allowing companies to switch, signal processing, etc. functional activities and to operate according to the user's choice. Although, according to Annex I and Annex II reservation, Chapter XI, XII shall not apply to telecommunications services, but the MFN principle should apply to telecommunications services (including basic telecommunications and value-added telecommunications). In addition, the chapter also emphasizes the principle of transparency requires the Member States on the use of and access to public information about the provisions of the network be open and transparent. At the same time, NAFTA on the public network of telecommunications equipment used to take standardized measures, and set up a "Telecommunications Standards Sub-Committee." The agreement of the Commission within six months after the commencement of the work plan to develop a unified standard to require the three governments in the Agreement enters into force within one year after the mutual recognition of their assessment process.
Although the WTO's GATS Annexes contributed greatly to the liberalization of the telecommunications value-added, but it does not include one of the basic telecommunications. The members of NAFTA negotiations, due to less interest in the coordination of resistance, which further than GATS farther, to a certain extent, a foundation involved in telecommunications issues, such as access to public networks (such as local telephone and other infrastructure to provide services) highlighted the user rights, but not limited to the interests of service providers.
11, the North American Free Trade Agreement / NAFTA-financial services
NAFTA Chapter 14, "Financial Services", a comprehensive set of principles and methods of management measures for the financial services, government constraints. Specific, should be bound by the measures include: members of the other members of the financial institutions to maintain the measures on the non-member investors to invest in measures of domestic financial institutions and cross-border financial services, including banking, insurance and securities services aspects of the measures. However, the set of constraints does not apply to a Member of the pension plan or social security system actions, or for the government accounts and financial resources involving the use of government action.
Arrangement of the chapters from the point of view, both the general requirement, there are some country-specific liberalization commitments, comply with the principles of transition agreements and certain reservations. Under the principle of non-discriminatory treatment in each country for business in its territory of another member service provider must be given national treatment, including equal opportunities to compete and be given national treatment. The transparency principle, requires all member countries in addressing the domestic financial services market access to its application for the program to ensure open, timely information, but should be announced in advance as possible to be taken to the Member States involved in another financial service provider's measures, and give the affected member the opportunity to evaluate this measure. And retention of specific commitments to gradually open up its mainly related to Mexico's commitment to financial services markets, including America, Canada's commitment to the financial services and retention. Mexico to allow other members of the financial institutions to establish financial institutions in Mexico, but in 2000 the market share previously subject to restrictions; After this, still retains the right to exercise security measures exception to its domestic banking and securities sectors to provide temporary protection . At the same time, "the North American Free Trade Agreement," financial services provisions still apply to trade between the two countries. U.S. financial services in Mexico only commitment is: to allow mergers and acquisitions in the United States for legitimate business facilities and there are banks in Mexico within five years after the implementation of mergers and acquisitions, securities institutions in the United States to continue the business.
12, the North American Free Trade Agreement / NAFTA-Land Transport
NAFTA specifically provides for a timetable to achieve the land transport services between members of the liberalization, unified land technical and safety standards. North American land market in order to create equal opportunities agreements phased three cross-border land transportation service limitations. The goal is to ensure the provision of land transport services to the three countries have ample opportunity to improve competitiveness and avoid trade liberalization in the transition phase to be at a disadvantage.
13, the North American Free Trade Agreement / NAFTA-professional services
Chapter 12, "cross-border provision of services" provided for mutual recognition of qualifications and certificates. Professional services in the annex also provides encouragement and support in trade agreements on standards of professional qualifications and mutual recognition agreements, and to develop specific programs for professional certification, exam, experience, professional conduct and professional ethical standards, liability insurance, residency requirements, etc. to provide for mutual recognition in order to reach a mutually acceptable standards of professional services which really make the direction of trade liberalization.
Chapter XVI "temporary entry of business people," members of a temporary entry of business persons in the territory of another Member State has made a business trading activities procedural requirements in order to adopt a consistent, objective and harmonized standards and procedures, the basis of reciprocity convenience on the temporary entry of business people. Member States shall provide each other on the temporary entry of business people information on the measures, and agreement within one year after the commencement of the temporary entry of business personnel required to provide explanatory information. Another resident nationals of member countries to submit proof of identity, its international business activities engaged in some kind of proof and it will not enter the local labor market that can be obtained temporary permission to enter a Member State. Agreements do not establish a common market free movement of labor. Each member entitled to employment in order to protect their own labor, to implement their own immigration policy and border measures. Professionals, which requires a certain expertise in business activities, usually at least a bachelor's degree or degree plus three years of experience, or permit to practice the staff, as an exception, according to the provisions of Chapter XIV, have temporary access to another Member States to provide business qualifications.
