Problems With NAFTA

Imagine being crammed in a un-air conditioned room with hundreds of workers in the Mexico heat. Imagine sewing all day and developing sore wrists which can lead to tendonitis. Imagine after nine grueling hours of work not getting paid enough to purchase food and other necessities for your family. Maquiladoras are very well known among the Mexico and US border. They conduct under tariff free materials which are imported to the companies. The North American Free Trade Agreement has a huge advancement and have grown by employing tons of Mexican workers. NAFTA (North American Free Trade Agreement) promised to increase workplace efficiency, help corporations, and to improve the lives of many workers. In my opinion, NAFTA did not keep their promise. They definitely did not improve the lives of many workers and everything else they guaranteed. NAFTA has not kept its promises because they work in terrible conditions, they do not get paid enough, and they are giving up hope.

The North American Free Trade Agreement (NAFTA) has boosted the US economy growth by introducing free trade with Mexico and Canada. Since, after the implementation of NAFTA in 1994, US have experienced several favourable outcomes. The imports and exports of agricultural goods, electronic equipment, machinery, automobiles, drugs, oil and minerals have been increased among the NAFTA countries thus giving rise to total profits. The agreement has also contributed in eliminating the unemployment in United States and has controlled inflation rates. NAFTA bloc has also created number of job opportunities in the country. Moreover, the consumer prices have been decreased and income levels of US citizens have been raised due to reduced tariffs and taxes. This paper will discuss the facts and figures since 1993 and show how United States has achieved benefits with NAFTA agreement.

One of most talked about issues to those who live in on the U.S.-Mexico Border is the economy. The economic relationship between the United States and Mexico began in the colonial era, but it was not formalized and strengthen until the North American Free Trade Agreement was enacted and ratified by both countries, with the addition of Canada, in 1993. Mexican government “made it clear that the enhancement of foreign direct

The effects of NAFTA on Mexico, U.S, and their economic situation have impacts on political interests. There was main objective of Mexico in pursuing free trade area with the United States or with other countries to stabilize the Mexican economy in sustainable way and promote economic development by attracting huge foreign direct investment means of increasing exports, in house manufacturing and creating jobs. NAFTA would improve investor confidence in Mexico has directly impact to increase export diversification, create job market increase wage rates, reduce poverty, improve standard of living, quality and economic growth

America’s economy is flat lining. We are bleeding jobs and hemorrhaging revenue. One out of every seven citizens is on financial life support and our government needs to do something stat. One of the first steps in the road to recovery is repealing the North Atlantic Free Trade Agreement, or NAFTA, because it is dangerous to our economic stability and future.

When NAFTA was created, no one really understood the impact that the measure would have on the world economy. Drilling down, NAFTA impacts put Mexican farmers out of business due to the “government-subsidized U.S. Farm products.” (Source: https://www.thebalance.com/disadvantages-of-nafta-3306273) As described in the New York Times, exports from the US to Mexico of “corn and other staples” that were subsidized on average of $20,000 per year by the US Government, resulted in “small farmers finding themselves unable to make a living. Some two million have been forced to leave their farms since Nafta.” (Sources: http://www.nytimes.com/roomfordebate/2013/11/24/what-weve-learned-from-nafta/under-nafta-mexico-suffered-and-the-united-states-felt-its-pain

the Mexican agricultural industry had to compete with the far more industrialized US farm industry. Even though the amount of exported products tripled since the institution of NAFTA [according to the economist], most of those exports were maize. The United States was producing a greater amount of grain products and importing them cheaply into Mexico. The amount of American imports overwhelmed the Mexican market and forced them to sell to America and Canada. The theory the United States held was NAFTA would decrease the amount of Mexican immigration. However, this hurt the Mexican economy enough until around 2008 to force millions of Mexicans into the United States, doubling the Mexican-born population to twelve million in 2013 (Sergei, M. 2014).

When countries have needs but not the capacity to satisfy those demands they enter into trading through the exchange of surplus, produce to help their trading partners. Canada, Mexico, and the United States created a treaty to establish a relationship that can benefit everyone in this process known as NAFTA. This agreement has been criticized and has been blamed for hurting the US economy more than helping. Although speculations may be misguided, I do not know much about this agreement, and I must research multiple sources. This paper seeks to understand if NAFTA has produced significant benefits for Canada, Mexico, and the United States economies.

corporations to dominate Mexican Businesses.” (Personal Communications) On the flip side, both the United States and Canada were worried about manufacturing jobs migrating south to Mexico, where wages were on average one-seventh what the United States’ wages were. Despite these doubts, NAFTA negotiation continued until it was put into effect by President Bill Clinton. Now, NAFTA is the world’s largest free trade area with around 450 million people included. It also has a total gross domestic product of around 20 trillion dollars, which is larger than the economic output of all 28 countries in the European Union (Amadeo, 2017). NAFTA also had several goals when was signed. Each of these goals was outlined on the first page of the agreement. In brief, these goals were to eliminate barriers, promote fair conditions of free trade, increase investment, enforce intellectual property rights, successfully implement the agreement, and lay the groundwork for even more trade between members (NAFTA – Chapter 1 n.d.).

NAFTA also realized that it would be better for their economy if they produce there on agriculture than buying it from Mexico, since we can mass produce it. One downside to NAFTA is that Mexico has cheaper labor laws so it is easier for them to make new businesses than it would be to make the same business in the US. This can also lead to shipping problems and increased accidents when they are transporting goods over the border. The upside to these problems is that they can be fixed by both countries if it becomes to much of a problem. Once these problems are fixed they will continue to progress at achievemore in their tariffs and economy.

NAFTA, North American Free Trade Agreement, is a treaty between the United States, Mexico, and Canada. It is very important especially to American farmers, because it allows the farmers to ship major amounts of corn, cotton, rice, and soybeans to Canada and Mexico. CEO Dwight Roberts said, “There is nothing better going on for the commodities we grow than NAFTA. We are very fortunate that we are next door to Mexico, a country of 120 million people who buy so much of our commodities. For rice, Mexico is the number one market in the world.”

North America consumes about 16.5% of the earth's land area and about 4.8% of its total surface and is known as a World Power to the rest of the world. For my section of this paper, I will be focusing on international sourcing and distribution in North America specifically Canada, United States, and Mexico. The binding ingredient when it comes to imports and exports in these three powerful countries is the North American Free Trade Agreement (NAFTA). NAFTA is one of the most influential international agreement between the US, Canada and Mexico that defined the economic, social and political development of the three countries and North American region. NAFTA's immediate aim was to increase cross-border commerce in North America, and in that

By joining this free trade agreement, Canada has been able to increase its trade with the US and Mexico. Two decades after the implementation of NAFTA, total merchandise trade between Canada and the US more than doubled at an annualized growth rate of 4.4%. During the same period, Canada 's merchandise exports to Mexico also increased  almost seven fold, and its trade with Mexico equaled $31 billion alone in the year 2012. Furthermore, a study completed by the Fraser Institute pointed out

Is it true that NAFTA deal changed a lot between the countries which are made NAFTA deal? According to McMillan (2015), in the article “How NAFTA changed America (and Mexican) food forever” that she explains the changed that happened after NAFTA deal between U.S, Mexico and Canada. First, NAFTA helped the “economic integration” to be better and cheaper than before 20 years ago. Also, America exhausted a lot of fruit and vegetables, so now the trucks road between America and Mexico very crowded because the trucks did the transfer of fruit and vegetables to America. Moreover, now NAFTA deal accept to them to eat the fresh food, so USDA propose to move the food system to Mexico. Additionally, now Mexico is the biggest market for America, and U.S

economy, following its cycles and trends since NAFTA agreement signed in 1994 by United States, Mexico and Canada as established a strong economical and political cooperation between these countries.