EXPLORING THE NORTH AMERICAN FREE TRADE AGREEMENT: INITIAL REACTION FROM ASIA

As the North American Free Trade Agreement (NAFTA) is put into effect, Asian countries have shown growing concerns about the protectionist nature of the NAFTA. Key provisions of NAFTA which have potential negative impacts on Asian economies are examined. The economic analysis suggests that there will not be much, if any, trade or investment diversion effect of NAFTA upon Asian countries. The initial reaction to NAFTA from these countries supports this prediction.