The Rise of Mexican Corn Production in the Face of Cheap Imports

Nonetheless, many analysts agree that NAFTA has made a mark. U.S.-Mexico trade continues to grow, and NAFTA and the promises it brings have lessened the impact of the Mexican recession and quickened its recovery. Healthy, growing bilateral trade, they say, depends on healthy, growing economies, and Mexico’s recovery and continuing economic liberalization should fuel that trend.

It caused a huge labor scare where critics warned that hundreds of thousands of American Jobs were going to be lost to cheap Mexican labor. However five years later, it has been proven that the labor scare that NAFTA produce was unfounded. It is true that the United States lost many jobs but it gained more jobs in return. What critics of NAFTA failed to understand is that trade agreements like NAFTA, where manufacturing jobs are shifted from the developed world to the developing world, are necessary. They are necessary not only to develop the developing world but also to continue in America’s path of development. America has long since passed the industrial revolution. Employment in the United States is now more related to the service industry than manufacturing. The growth of the service industry in the United States while the stagnation of the manufacturing industry shows us that the United States is entering another stage of development. Mexico on the other hand is becoming industrialized and its manufacturing sector is rapidly growing. More people are being employed in manufacturing jobs as less and less people are working in agricultural production. Mexico too is passing into another stage in its development. Mexico is being industrialized while the United States is leaving the industrialized phase and entering a new era where the service business dominates. Trade agreements like the North

One of NAFTA's greatest financial effects for the United States and Canadian exchanges has been to increase bilateral agricultural flows (NAFTA’s Economic Impact). From all three countries, Canada, from the statistics gathered, showed that it had the most economic increase because of the previous organized free trade deal that originated before NAFTA (NAFTA’s Economic Impact). Canada is the main exporter of products to the United States, furthermore, Mexican interests in Canada have tripled, and Canada has included 4.7 million new work occupations since 1993 (NAFTA’s Economic Impact). With NAFTA, Canadian organizations are turning out to be more productive and competitive prompting new jobs (when a business profits, they have enough money to bring more

Implementation of the North American Free Trade Agreement (NAFTA) began on January 1, 1994, and is one of the United States’ most significant regional trade agreements. The final provisions of the NAFTA were fully implemented on January 1, 2008. With full implementation, the last remaining trade restriction on a handful of agricultural commodities such as U.S. exports to Mexico of corn, dry edible beans, nonfat dry milk and high fructose corn syrup and Mexican exports to the United States of sugar and certain horticultural products are now removed. As you can see this agreement will have the potential to remove most barriers to agricultural trade and investment among the United States,

Introduction The North American Free Trade Agreement, or NAFTA, implemented in1994, is a trilateral agreement which helps facilitate trade between the three countries of North America; the United States, Canada, and Mexico. The agreement has transformed the bilateral relations between the United states and Mexico in many regards. Since NAFTA came into effect, the United States has become Mexico’s main trading partner considering that 88 percent of Mexico’s exports and 56 percent of their imports go to the United States (U.S.). The new relationship between the U.S. and Mexico’s economy was foreseen by the creators of NAFTA. However, an entirely unforeseen factor that affected both countries was the dramatic increase

With NAFTA, small farmers from Mexico now have the ability to sell their products to larger companies and groups of people.

Previously it was noted Mexico’s trade as a percent of GDP was a good indicator of how well the economy has been doing since NAFTA took effect. Mexico’s trade as a percent of GDP is 65 percent, and taking into consideration that the United States’ is 32 percent, it can be concluded that Mexico is very open when it comes to trade (O’Neil, 55). Economic growth should not just stop at comparing GDP levels, however. According to James McBride, “NAFTA gave a major boost to Mexican farm exports to the United States, which have tripled since NAFTA’s implementation” (4). Since tariffs were removed on farm exports, it’s no surprise that Mexico is exporting more which equates to earning more, and since tariffs are gone they are not being penalized for doing

NAFTA has brought positives, but has also dealt with some negatives. US and Canada have lost quality manufacturing jobs to Mexico. Likewise, Mexico farmers

In the beginning, Mexico had hoped to gain from the agreement by a growth in the national output, falling unemployment rates, and increasing trade with the U.S. The NAFTA has, perhaps, benefited Mexico the most out of all the other two countries. This can perhaps be best reflected in the rapid growth of the Mexican maquiladora industry. “A maquiladora is a labor-intensive organization that imports inputs, often from the United States, and then processes and exports them. Because maquiladoras often link the border economies of U.S. and Mexican cities, these plants have been some of the major beneficiaries of NAFTA. In 1993, Maquiladoras numbered only 2,143. Just six years later, the number of maquiladoras had increased 73% to 3,703” (Fugate 2005). This shows that NAFTA has positively affected the Mexican economy, more than it has any other country.

Measuring the overall economic impact of NAFTA, is challenging due to the effect of other factors such as recession, inflation, economic growth, and currency fluctuations in the economy. It appears that NAFTA neither caused a significant job loss that was predicted by opponents nor the large economic growth foreseen by proponents. Particularly in the United Stated the impact was relatively modest since the trade with Canada and Mexico accounts for a low percentage of the U.S. GDP. Nevertheless, all three countries went through the adjustment period to a more open trade and investment policies (Villarreal & Fergusson, 2014).

Specially, farming in the U.S. are one of several industries that has had a positive impact from NAFTA as the exporting of wheat, corn, and live chicken have increased. According Simonds (2014), “trade with Mexico has increased by 506% between 1993 and 2012, compared with 279% with non-NAFTA countries.” Also, NAFTA has had a positive impact on the U.S. in the oil industry as well. Due to the elimination of tariffs, oil prices have decreased over the years. As a result, it allows the U.S. not to rely so significantly on the Middle East for oil as both Mexico and Canada are equally distributors of oil. In addition, NAFTA has affected tourism and increased capital in the U.S. Hills (2014), found that “Canadians made over 21 million trips to the U.S. spending nearly $24 billion there and Mexicans made over 13 million visits to U.S. spend approximately $8

The growth in Agriculture was one of main issues and objectives when this agreement was about to be signed by the country representatives. Mexican President Carlos Salinas opened his campaign by proposing an improvement in the Mexican economy, by opening the Mexican economy to greater foreign investment and competition with foreign goods (Richard 1031). This plan eventually became successful since Mexico now is open to foreign investment thanks to NAFTA. The North American Trade Agreement help improve the agriculture relationship between Mexico and other countries (especially the United States). It is quite clear that NAFTA helped President Carlos Salinas’s objective to improve the Mexican economy. For example, “Since 1994, U.S. maize exports to Mexico have increased nearly 20-fold according to the U.S. Department

NAFTA allowed Mexico to enhance development and get close to the US and Canada. Mexican manufacturers could adopt the US technology and became more innovative, which had a positive impact on the number and quality of jobs. Due to NAFTA, Mexico increased FDI, which would be 40% lower without the agreement (Villarreal 7). Mexico’s economic performance was strongly

This article was wriiten almost 10 years into NAFTA, in which it was warning Mexico that the end of the tariff quotas it had against corn importation were soon to expire and by then the United States would be allowed to dump all it corn into Mexico. By 2008 is when the last tariffs would be stripped from the agreement. There were observers of what could potentially go wrong once the tariffs ended.

In the article “NAFTA at 20: Overviews and Trade Effects” by Villarreal and Fergusson, we are given and account of the North American Free Trade Agreement (NAFTA). Specifically, the article is broken down into four main sections. They are: trade liberalization before the implementation of NAFTA, an overview of NAFTA provisions, trade trends and economic effects, and policy considerations respectively. In each of these sections, the article discusses in detail how what NAFTA is and how it has affected the US, Canadian, and Mexican economies. Therefore, let us briefly examine NAFTA.