The North American Free Trade Agreement - 786 Words

On January 1, 1994, the North American free trade agreement was signed. The North American Free Trade Agreement was established so that goods and services could be traded between countries without tariffs and other trading fees while keeping peace between the trading countries. The United States now has many Free Trade Agreements (FTA) in place with numerous countries. There are many mutual benefits to signing Free Trade Agreements besides trading without tariffs and other fees. Free Trade Agreements also effect the economies of each of the countries involved in the agreement. This is because the countries without the ability to produce certain resources get them. Sometimes countries do have the resources but it would just be more cost†¦show more content†¦On June 15, 2004, Morocco and the United States signed a Free Trade Agreement (FTA). Morocco is a country in North Africa that borders the Atlantic Ocean and the Mediterranean Sea. Morocco currently has approximately 33,000,000 people and has a GDP per capita of about $7,500. Morocco provides resources that help produce some of the goods and services we have in the United States and the United States helps provide some of the resources morocco does not produce. Morocco’s economy is pretty sustained now. Before establishing a FTA with the United States in 2004, Morocco’s GDP was 101.904 and GDP per capita was $3,409. Although they are expecting growth, there will not be much growth. Therefore, there will not be much of a change in the amount of unemployment or poverty due to the weather conditions affecting one of their main employers, which is the agricultural field. This field of work employs about 40% of their workforce. France imports 46% of hosiery, 29% of basic textile and 28% of ready-to-wear clothing from Morocco making them one of Morocco s top clients for exporting textile and clothing. Manufacturing is also very important in their growing economy due to the need to process raw materials for export and manufacturing consumer goods for selling and trading. Mining is an essential part of the Moroccan economy. Mining employs about 40,000 people and represents $ 2 billion in exports and 20% energy