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Effect Of NAFTA On The North American Automotive Industry

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Trade barriers occur because of government actions or inactions that result in a lack of ability or interest in trading across national borders. The North and South American automotive industry is a complex system which is highly sensitive to trade barriers, which I believe stems in part from the positive effect NAFTA has had on North American trade. Unfortunately, Brazil has implemented some protectionist trade barriers. Luiz Moan says Brazil needs to protect and maintain its automotive industry because of “competitiveness issues” with other countries. Maon has helped to create an agreement, which has limited the number of imported vehicles from Mexico, once again restricting the free trade agreement as they did before in 2012. This agreement

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