North American Free Trade Agreement (NAFTA)

1764 Words Jun 25th, 2018 8 Pages
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

Brief Overview:
NAFTA, The North American Free Trade Agreement, came into existence on January 1, 1994. NAFTA is essentially a free-trade agreement between the 3 North American nations of the Unites States, Canada, and Mexico. The major thought behind this treaty was to give the citizens and the companies of the North American nations many incentives to trade between themselves. The duties on U.S goods exported to Mexico were slashed by fifty percent, and other restrictions were to be detached from a lot of categories, such as motor vehicles, computers, automotive parts, and agricultural goods. NAFTA was also put into action so to safeguard the intellectual property rights of the companies, such
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In 1993, Maquiladoras accounted to just 2143. But 6 yrs hence, the total count of maquiladoras had risen 73 percent to 3703”. This illustrates that NAFTA has had a net positive influence on Mexico, more than any other country.

NAFTA: The Good, the Bad, and the Ugly: As mentioned earlier, NAFTA to date continues to be controversial, much before its origin. The main quarrel that quite a few politicians have had against NAFTA is that they dread it would turn nations of the likes of Canada into full time branch plant economies. The farmers in Mexico have been resisting NAFTA since they are of the opinion that all the subsidies that the United States’ farmers get has a detrimental effect on the Mexican agricultural prices, which in turn is forcing a lot of the Mexican farmers out of business. A lot of sectors in Mexico have displayed a solid downward trend in the salaries. Quite a few revolutions have been born in Mexico, e.g. the Zapatista revolutionaries, and this has led to plenty socio-political issues for the

Mexicans. “Furthermore, NAFTA was accompanied by a striking decline of the power of trade unions in Mexico's city areas. NAFTA has been accompanied by a remarkable rise of illegal immigration from Mexico to the United States; apparently, a noteworthy fraction of this group are farmers forced off their land by bankruptcy. Resistance to NAFTA also arises from social justice, environmental and other advocacy organizations that are of
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