The Pros And Cons Of Free Trade In The United States

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Free trade is an important economic policy that has been brought to the forefront of debate. Arguments have varied from the potential harm it brings to specific groups of people, to the idea that free trade is extremely beneficial in the increasing of competition and improving the nationwide economy. Free trade is a policy that practices removing restrictions such as tariffs, taxes, and bans, allowing for free participation among all kinds of economies and producers. In other words, free trade is a way to “break down” economic barriers. Comparative advantage is a term often used to support the policy of free trade. The theory of comparative advantage displays that if trading partners produce where there is the lowest opportunity cost, then…show more content…
As stated in a New York Times article: “The report said the price of Mexican corn has fallen more than 70 percent since Nafta took effect, severely reducing the incomes of the 15 million Mexicans who depend on corn for their livelihood.” Nafta is an agreement between the U.S., Canada, and Mexico. The pact’s purpose is to improve the economy and produce more “stuff” by removing tariffs on trading between the three countries. This hurts Mexican corn farmers because since there is no restriction, trade is a free and easy way to get the necessities that each place needs. Since America has the higher number of people, more advanced machines, and more efficient workers and systems, the nation is able to easily produce more than the poor corn harvesters in Mexico. The passage from New York Times gives specific evidence and statistics that show how America was easily able to put out millions of Mexican farmers. Because America was able to make corn better and faster, and because free trade was active, Mexico and Canada were much more adamant in taking America’s corn rather than the poor farmers’. In addition, America’s corn was also much cheaper because it was easy to make and was produced in high numbers, while the farmers in Mexico had to work hard in the fields with less advanced tools. As America’s corn piled up in Mexico, Mexican farmers also stopped working, and some even moved to the U.S. to work there instead. According to another article, “...the agricultural elements of the pact were brutal on Mexico's corn farmers. A flood of U.S. corn imports, combined with subsidies that favor agribusiness, are blamed for the loss of 2 million farm jobs in Mexico. The trade pact worsened illegal migration, some experts say, particularly in areas where small farmers barely eke out a living.” This statement also displays the struggles and impacts that were inflicted upon Mexico and its
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