A Discussion of the Negative Impact of NAFTA on North America

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A Discussion of the Negative Impact of NAFTA on North America The North American Free Trade Agreement was passed in November of 1993 and went into effect on January 1, 1994. The agreement aimed to eliminate tariffs between Canada, Mexico and the United States, leading to the eventual creation of free trade among these three countries by the year 2008. Supporters of NAFTA billed the agreement as a wonderful opportunity to create jobs, stimulate competition, and free North America from harsh and often unfair tariffs that restricted trade between the three nations. From a theoretical perspective, NAFTA appeared to have the makings of a highly beneficial relationship between Canada, Mexico and the United States. Despite the great…show more content…
Many experts agree that NAFTA has played a major role in the modernization of Mexico. For one, manufacturing exports have grown at an annual rate of 16% since 1994 (Salas, 2001). In addition, NAFTA has allowed Mexico to trade freely with more industrialized nations, namely the United States and Canada. Mexico has now become the fourth largest supplier of goods to Canada growing at an annual rate of almost 16% (Campbell, 2001). In addition, Mexico has replaced Japan as the second largest trading partner with the United States, growing at an annual rate of 17.5% (Salas, 2001). This activity stimulates industrial and economic growth as more and more the positives of maintaining a modern nation are realized. In addition, with more capital flowing into Mexico, more jobs were created in the industrial and manufacture sectors of the economy. Since the adoption of NAFTA, trade between Canada and the US has also increased considerably. Canada is the number one trading partner with the United States. As a result of this relationship, Canada’s export economy has experienced rapid growth over the last few years. It is estimated that Canada’s exports make up approximately 40% of its gross domestic product which is almost twice what it was in 1989 (Campbell, 2001). Proponents of NAFTA argue that such an increase in the export economy has lead to the creation of

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