EC expects benefits from NAFTA but has reservations.A European Community European Community: see European Union. European Community (EC) Organization formed in 1967 with the merger of the European Economic Community, European Coal and Steel Community, and European Atomic Energy Community. Commission opinion paper on the North American Free Trade Agreement North American Free Trade Agreement (NAFTA), accord establishing a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994. (NAFTA NAFTA in full North American Free Trade Agreement Trade pact signed by Canada, the U.S., and Mexico in 1992, which took effect in 1994. Inspired by the success of the European Community in reducing trade barriers among its members, NAFTA created the world's ) was largely positive but also expressed some reservations about its potential impact. The EC is Mexico's second-largest trading partner and has benefited from that country's growth and its open-door policy Noun 1. open-door policy - the policy of granting equal trade opportunities to all countries open door national trading policy, trade policy - a government's policy controlling foreign trade . The opinion paper expected some displacement of its products by North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. ones as tariffs shrink, while it looked to increased economic growth in Mexico to further improve EC-Mexico trade. Also, as the second largest investor in Mexico, the EC was pleased with the greater economic security NAFTA should bring. On the negative side, the EC considered NAFTA rules of origin for cars and textiles to be more restrictive than those in Europe. EC farm products could face higher barriers to the Mexican market under NAFTA. In addition, the EC did not rule out the possibility that NAFTA benefits in financial services would be limited to companies majority-owned by NAFTA nationals, which the opinion paper said was contrary to EC policy. |
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