Printer Friendly

EC expects benefits from NAFTA but has reservations.

A European Community Commission opinion paper on the North American Free Trade Agreement (NAFTA) 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. The opinion paper expected some displacement of its products by North American 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.
COPYRIGHT 1993 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:North American Free Trade Agreement
Publication:Journal of Accountancy
Article Type:Brief Article
Date:Sep 1, 1993
Words:165
Previous Article:Commercial bank loan capacity grows as finances improve.
Next Article:Partial EC-U.S. procurement agreement averts trade war.
Topics:


Related Articles
Is this land really our land? Impacts of free trade agreements on U.S. environmental protection.
Readers support North American Free Trade Agreement.
Protectionist racket.
When it comes to NAFTA ....
NAFTA numbers don't add up.
Swap meat: friends and critics miss the point on NAFTA.
JORDAN - Apr. 10 - US May Revise Trade Pact.
Trade and environment in the Western Hemisphere: expanding the North American Agreement on Environmental Cooperation into the Americas.
First NAFTA, now CAFTA?
Canada wins another NAFTA challenge.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters