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Nafta Economic Impact Essay

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NAFTA’s Economic Impact In 1994, the North American Free Trade Agreement went into effect between the United States, Canada, and Mexico. Its purpose was to remove barriers between the three nations in order to make trade easier, which in turn would be beneficial to all. Why is NAFTA so controversial? Some people claim due to the trade agreement, too many jobs were lost here at home in the US. The article titled, “NAFTA’s Economic Impact”, published on The Council on Foreign Relations, shows us how each economy has fared since NAFTA’s inception.
The United States The United States has seen significant positive changes from the enactment of NAFTA. In the more than two decades since, U.S trade with Canada, and Mexico has more than tripled compared to the U.S and the rest of the world. It is also believed that some 14 million jobs rely on trade with Canada and Mexico alone. For the U.S in regards to American food and agriculture, exports to Mexico and Canada grew by 450 percent. In 2016, nearly $43 billion worth of food and agriculture were exported to our NAFTA partners, making them the largest consumers of U.S agriculture. With most things there are tradeoffs. A 2014 study of NAFTA’s effects showed that on average 15,000 jobs are lost each year due to the pact.
Canada …show more content…

In 1993, U.S investment in Canada was roughly $70 billion and has since grown to about $368 billion as of 2013 according to the Council on Foreign Relations. Canadian agricultural trade with the U.S and Mexico has gone up 95 percent. Canadian meat exports to Mexico has increased from $4 million in 1997 to $200 million as of 2016. Canadian exports of mixes, dough, cereals and bakery goods has also increased significantly and it has been reported that they now have comparative advantage in this type of food processing. Aside from all the positive effects, trade disputes have been common between the U.S and

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It is said that the government tries to have the best of intentions for the economy. In a recent article Canada is talked about in how they have been intervening in the farm markets. They are trying to enhance profitability for the farms by using different programs and policies. Government interference in agriculture does not only affects which goods and products are produced, but also the quantity of imports and exports of many commodities. This usually is because they are trying to make the economy efficient but this can sometime backfire and make it inefficient.

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The Struggle for Labor Rights on Mexican Maquiladoras María Eugenia de la O Introduction The 1960s, hundreds of foreign assembly factories were established along the Mexico-United States border cities as a result of increasing labor force costs in industrialized nations, and also as an economic strategy of the Mexican government who provided tax incentives, infrastructure and low wages to the new investors. Decades after, in the 1990s, Mexico, Canada and United States signed the North American Free Trade Agreement (NAFTA), consequently thousands of factories -call maquiladoras- be transformed into an important source of foreign investment and jobs to Mexico. Currently there are thousands of maquiladoras in the nation; according to recent

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As other industries when to bankrupt, maquiladoras profited. NAFTA, which is the North American Free Trade Agreement, contributed to the expansion of the maquiladora industries in the early 1990s resulting in an increase in the maquiladora job market. When American companies started to set up in large numbers, multi-party democracies began to dominate the northern part of Mexico. With the additional influence of American ideals, Mexico’s maquiladoras have strengthened both cities. In the midst of the early 1990s and early 2000s, the growth between that time span for maquiladoras had an annual average rate of 10%.

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Tariffs would be categorically reduced between the two nations, massively expanding the exchange of goods between the two countries. Labour activism, which had been so prominent in the environment of economic nationalism in the early Trudeau era, was devastated. High unemployment massively decreased

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Along with the Confederation to begin the formation of Canada, the reciprocity debate of 1911 and NAFTA further impacted the development of Canada, because of its economic significance. The reciprocity debate of 1911 and NAFTA pronounced Canada economically through the flourishing of trade with other countries. The reciprocity agreement between Canada and the United States was instated to protect tariffs on goods traded between the two countries. Consequentially, the economy for Canada increased, with exports to the United States growing by 33%, post treaty.

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The positive effect these factories are that maquiladoras employ over 17% of the population in Mexico who would otherwise be unemployed if these maquiladoras did not exist . The rate of unemployment is lower along the border than it is anywhere else in Mexico and these factories allow women to join the workforce where without these factories they would be housewives or be trafficked . Maquiladoras are leading the country to economic growth and additionally maquiladoras have helped build a network of successful Mexican businessmen who are skilled in managing multi-national companies, allowing them to take charge. Maquiladoras ensure that Mexico will have a firm position in the global economy.

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Benjamin Franklin said, “No nation was ever ruined by trade.” During the early modern era, technological advancements in shipbuilding and increased knowledge on wind and current patterns made global trading possible. The increased flow of trade in the 1300s through 1800s created important social relations and economic opportunities due to the increased integration of foreign people and desire to be wealthiest and most powerful, while improving government, culture, and ideas in the modern world. Global trading increased the spread of people, which also increased the spread of religion and culture.

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In the last 100 years, Canada showed

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Although this article does not really discuss the american influence on Canada, it mentions how by canada joining prestigious organizations, they become “more americain.” The fact that this article discusses Canada becoming “more american” is what interest me and is what I am going to use for my own paper. I am going to discuss how countries relate Canada's distinctiveness to Canada becoming more like the United States. This article also discusses how Canada's decision to join to OAS was expected, but also considered a revolution as they were convinced by the Americas to join, or more so, convinced by the United States.

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The relationship between the United States and Canada is another great result of the interplay of democracy and political culture and one of the greatest results of the was the NAFTA. There have always been people who were not particularly happy with the relationship of Canada and U.S, especially those who felt like it was not benefitting Canada, and there also people who doubted that the free trade agreement would ever work. As Inwood states, “the great debate that raged in Canada around the 1988 election concerning free trade was deeply resonant of the political culture of the country and touches on all aspects of public administration” (p.47). The arguments against free trade stated that Canada would not be able to integrate well into the system and that there would be more to lose than gain, while continentalists felt that it was nothing more than an opportunity and economic arrangement (Inwood, p.47). Canada had to make sacrifices when it came down to decision-making and traditional trade remedies, “Moreover, in political culture terms, the free trade debate has become a flash point for those who argue for the supremacy of the free market versus those who argue for a positive, interventionist state-all of which has a direct impact on public administration” (Inwood, 47)

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NAFTA took effect in January of 1994.Its main purpose is to increase the agriculture trade and investment among the three countries. According to the department of agriculture, Mexico lost over 900,000 farming jobs in the first decade of NAFTA. ( McKenzie, 2015 ). Before NAFTA people of Mexico grew corn and was able to support their family and country economy. Shortly after NAFTA cheap American corn came pouring in form the borders, which caused a major effect on families that were working in farms in Mexico.

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