The United States also participates in some smaller regional trade agreements, such as the Caribbean Basin Initiative, which provides for reduced tariffs on imports from these countries, and a free trade agreement with Israel. These political disputes over how nations should respond to globalization and trade are disputed on several levels: at the global level through the World Trade Organization and through regional trade agreements between couples or groups of countries. There was also a question of reciprocity. NAFTA would have allowed unlimited access to U.S. vehicles throughout Mexico. A similar agreement works well between NAFTA`s other partner, Canada. Mexican trucks can be much heavier than American trucks, and many use a heavy rolling beam suspension system, which could cause them more damage to American roads. Thanks to NAFTA, Mexico has lost nearly 1.3 million agricultural jobs. The 2002 Farm Bill subsidized the United States.
When NAFTA lifted the trade tariffs, companies exported corn and other grains to Mexico at a lower cost. Rural Mexican farmers could not compete. At the same time, Mexico reduced its subsidies to farmers from 33.2 per cent of total agricultural income in 1990 to 13.2 per cent in 2001. These changes have meant that many Mexican smallholder farmers have been driven into bankruptcy by heavily subsidized U.S. farmers. Trade policy is defined at different levels: administrative authorities within the government, laws passed by the legislature, regional negotiations between a small group of nations (sometimes only two) and global negotiations on the World Trade Organization. In the second half of the twentieth century, barriers to trade in the U.S. economy and in the global economy in general decreased significantly. One of the reasons countries sign international trade agreements to commit to free trade is to protect themselves from their own special interests. If an industry is committed to protecting itself from foreign producers, politicians may point out that their hands are tied because of the trade deal.