Effects Of Nafta On Mexican Farmers

1665 Words Sep 27th, 2015 7 Pages
Effects of NAFTA on Mexican farmers
Introduction
NAFTA refers to a trilateral free-trade agreement, which came into force in January 1994. It was concluded between the USA, Mexico and Canada. The main purpose of the agreement was to eliminate most tariffs on products traded between the three countries. It was decided that the tariffs would be phased out gradually. The final phase of the treaty was supposed to be introduced by January 1, 2008 (Yunez-Naude 5). As a result of the agreement, tariffs were eliminated in several industries. Agriculture was in the main focus, together with textiles and automobiles. In addition, NAFTA developed intellectual-property protection regulation, as well as dispute-resolution mechanisms and environmental safeguards. The main objective of the treaty was to foster economic growth of three countries through enhanced competition in domestic markets. It was also supposed to encourage investment across the traded nations.
The purpose of this essay is to overview the effects of NAFTA on Mexican farmers. It is argued that Mexican farmers suffered significantly as a result of NAFTA introduction. Due to substantial government support, the USA farmers managed to export their products at costs lower than production ones, which the WTO calls “dumping prices”. As a result of this, it became cheaper for Mexico to purchase agricultural products from the USA than to produce domestically. This significantly worsened the situation for local farmers and…
Open Document