NAFTA and Nearshoring
One of the most recent debate themes has been the NAFTA (North American Free Trade Agreement). It has been around for a while, since 1994, do you remember what it is about?
Basically, the NAFTA basically lifts taxes on exports and imports on virtually all goods traded between the US, Mexico, and Canada, with the purpose of making business easier for companies across the three countries. It was signed in ‘92 but came into effect in ’94.
The consequences have been positive and negative, it all depends on whom you ask. For example, in the field of nearshoring, we find testimonies like the one of Denis Baker’s, Nearshore Blog. In an article he ponders about the NAFTA effect: “[it] has helped us all become culturally closer, which is important in our industry, in the technology market”.
Sharing both culture and knowledge is an important factor that makes nearshoring very helpful for industries in a wide variety of fields. From technology to business development and more, companies around the world trust nearshoring. Thanks to the NAFTA, the feeling continues growing.
Although we’re still living its effects and recently renegotiating its conditions, we can assure one thing: it has changed the market for all three countries forever.