|← Russias Export Ban on Wheat||China, Japan and Korea →|
In January 1994, the United States, Canada and Mexico signed a trade deal. This deal was known as the North American Free Trade Agreement, commonly known as NAFTA. It was to this agreement was to help improve the trade in these three countries as it removed the barriers to trade. The borders were thus opened and free trade was allowed between the three states. The free trade was meant to stop the notion that was there and had been accompanied by fear because of arrested for trading between two borders. As a result of this agreement, many companies have invested in the trade industry in these three counties. Of major interest is the Pressure Pipe inspection Companies which have got a Canadian origin but have done a great job in increasing Mexico's revenue. They have been named Mexico- NAFTA's third Amigo. They are called Amigo's because they have been helpful to the Mexican revenue.
The pressure Pipe has offered Mexico a way out of dealing with the pressure pipe water leaks. It has introduced a technology whereby the pipes are inspected by the machines and leaking areas are detected. Thus, there is no much alarm over the issue of leakage when the machine ball. This has helped the industries and the municipalities, as they are able to deal with the problem of bursts in a more controlled way. The technology, which initially started in Canada in 1997, made its path into Mexico in 2004 and has multiplied (Pulfer, 2009). The returns from the companies were positive as this pipeline project helped boost the revenue of Mexico to over 25%. The companies have also provided employment for the Mexican residents, both the engineers and the support staff. They still keep on hiring more residents with each passing day, thus dealing with the problem of unemployment. The success of these Pressure Pipe Companies is a reflective of the developing trade between Canada and Mexico. It has increased the trade between these two countries by 9%. Mexico has benefited from this trade deal because its trade surplus revenue increased from 7.3 Billion US dollars to 26.2 Billion Us dollars.
The result of this success by the Pressure Pipes Companies has drawn interest of investors into Mexico with more passion than before. They now have the right attitude that Mexico is a big country that can boost your trade any day. There is an increased number of businesses with Canadian influence in Mexico. These run from the mining to the banking sector. In the year 2004, the banking saw a boost. The Scotia bank invested 500 million dollars in a local bank in Mexico. This provided a very good opportunity to provide a service that was not well established in Mexico. The bank became a success with revenues of over 12% of the parent bank. Thus, this free trade between Mexico country and the Canadian country are very significant. All this confidence is however credited to the Pressure Pipes Company. They brought the trust that was needed for the other companies to get involved (Pulfer, 2009).
You are About to Start Earning with EssaysProfessors
Tell your friends about our service and earn bonuses from their ordersEarn Now
The opening up of the border by NAFTA was so as to provide these countries with better trade environment. However, the success of the Pressure Pipe Company in Mexico cemented this deal. The company became such a success that it drew even more investors to come to Mexico. This is the reason why these companies have been branded the Third Amigos of NAFTA. Their effect has helped to increase the revenue of the Mexican country as well as provide a better relationship between Canada and Mexico. As a result, the free trade has been successful between the two countries and they each benefit from their trades.
Include FREE Plagiarism Report (on demand)$15
Include FREE Bibliography/Reference Page$15
Include FREE Revision on demand$30
Include FREE E-mail Delivery$10
Include FREE Formatting$5
Include FREE Outline$5