The term NAFTA means North American Free Trade Agreement which facilitates trade between United States, Canada and Mexico. On the other there is a small place which is strangled in terms of economy; it is known as the Gaza strip. It is an alarming situation to know how a small piece of land has grabbed the attention of the world. It has become the source of grief and fear for many people.
The NAFTA started with President Ronald Reagan who made efforts for creating a united North American Market. Its basic aim is to promote economic growth by easy movement of goods and services between the three countries.
The history of Gaza strip is filled with bloodshed and violence. Hamas which is known as the Islamic Resistance Movement currently controls the strip. It won the elections in 2006 and formed the democratic government. After gaining power, they violently removed the Palestinian Authority’s security forces and civil servants from the Gaza Strip in 2007.
With the creation of NAFTA, the high tariffs for goods and services transported over the borders between the United States, Canada and Mexico were practically eliminated. This elimination also reduced the inflation which subsequently reduced the cost of imports. This also did not slow down the flow of goods and services between the three countries. Trade between the countries was encouraged and capital for foreign investors increased.
The continuous war in Gaza has destroyed its economy. Although the population was mostly Egyptian before the Israeli occupation of Gaza, many Palestinians were forced to flee Israeli occupied lands and settle in the Gaza Strip due to the fighting between Arabs and Jews.
The Egypt Peace Treaty of 1979 had settled the international border between the Gaza Strip and Egypt. However the status of Gaza Strip and other relations between Israel and Palestinians were not dealt with in the treaty.
The US and Mexico have benefited from NAFTA in regarding agriculture. Because of this agreement, the U.S. agricultural exports to Canada and Mexico have grown drastically.
A disengagement plan from the Gaza Strip was agreed by Israeli government in 2005. All Israeli settlements in Gaza and in the West Bank were dismantled finally ending its Israeli military rule.
Just like NAFTA made easy expansion of services removing the trade barriers between the member countries. The economic powers of the world also have to play their role in easing the economic sufferings of the oppressed living in poor conditions and shortage of basic necessities.