Journal of International Business and Economics

NAFTA - Transportation Challenges: Case Study US-Mexico
Dr. Rossano V. Gerald, D.B.A

Abstract
The North American Free Trade Agreement (NAFTA) has increase trade between Canada, the United States (US) and Mexico by reducing tariffs on imports and exports, in which influences foreign direct investment, economic growth and reduced trade barriers in these regions. This trilateral trade agreement has influence the flow commercial traffic through these countries continental transportation corridors, which is providing cross-border trading and international commerce for this geographical market. These continental gateways are seaports, roadways and railways that transport products and goods to these marketplaces. However, trading partners are relying on each country’s transportation and distribution services that are operating independently and lacking interconnectivity among each others logistical channels. As a result, the transportation channel participants are not able to prevent congestions and delays along their routes, which may be caused by NAFTAs’ poor logistics system. This research paper will address the NAFTA’s transportation challenges between the U.S. and Mexico when transporting products and goods across their friendly borders.

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