Economic Effects Of Nafta On Mexico

1348 WordsNov 28, 20166 Pages
Project 5: Economic effects NAFTA has on Mexico Twenty years have passed since the implantation of the North American Free Trade agreement. While it has changed Mexico in some fundamental ways, the treaty never met many of its extensive promises to close Mexico 's wage gap with the United States, boost job growth, fight poverty, and protect the environment. The hope was that freer trade would bring stronger and steadier economic growth to Mexico, providing new jobs and opportunities for its growing workforce and discouraging illegal migration from Mexico. With modernizing the Mexican economy so that it would export goods, not people. Mexico’s people feel as though NAFTA’s pledge has created a loss of national independence and a narrow income gap. If the NAFTA agreement had not been signed, Mexico would have been in a much worse situation than it has been over the last twenty years. Before NAFTA, Mexico was a closed state-dominated economy in debt which had underlying problems with Mexican farms that had low productivity on small plots which began mass unemployment. The trade bloc, has brought globalization and foreign investment that has helped create jobs, even though they were low-paid ones. Mexico took advantage of the pact with the United States and Canada in areas like auto, electronics, and agriculture sectors which brought in foreign banks that increased access to credit, but a majority of Mexicans saw little benefit in income. While there is certainly a larger
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