Trade Distortions in a Free-trade Zone: The Case of Sanitary and Phytosanitary Restrictions
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The intent of the North American Free Trade Agreement (NAFTA) is to create a customs union, or free-trade zone, among the countries of Canada, the United States, and Mexico, in which goods and services can be freely traded. The European Union (E.U.) is even more ambitious in that it not only allows tariff-free trade but has also created a common currency. The Common Market of the South (MERCOSUR) is a free-trade zone that encompasses Brazil, Argentina, Paraguay and Uruguay and is similar in scope to the zone designated in NAFTA.
KeywordsMethyl Bromide North American Free Trade Agreement Enforcement Cost Trade Distortion Harmful Pest
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