Pros And Cons To Pull Out Of NAFTA

For a minute, envision a country soon drowning into recession, citizens fighting for their lives on the street. Middle-class families selling their homes and moving to the streets, while families that didn’t have homes, dying. Everyday necessities like milk becoming luxuries. This vision could soon become a real possibility for the residents of Canada, Mexico, and The United States, if president, Donald Trump decides to pull out of NAFTA. NAFTA, the North American Free Trade Agreement was first put into effect in 1994 when The United States Of America, Mexico, and Canada decided to create a trade agreement for the purpose of removing barriers for the exchange of goods and services among the 3 countries. Since NAFTA was put into effect, the

For Canadians this would mean spending more money when they go grocery shopping or when they go to the mall and buy American products. For example, a 3-pound bag of apples costs $2.27 right now. However, with the termination of NAFTA, Canadians can expect a 2-pound bag of apples to cost roughly $5.00. That may not seem like a lot of money right now, however, the deficit can be up to 150 dollars a year if a family buys one 2 pound bag each week. According to a report from BMO Capital Markets, “The Day After NAFTA would translate into an increase of roughly $400 to $500 per household a week.” This report suggests that Ontario would be the most liable province, as it has strong links with the U.S. economy and many of its products originate from the country south of us. In addition, this report highlights that Canadian retailers will be at the greatest disadvantage, as they will have to a pay a hefty fee on every product they buy. The Kearney report proposes that for every 1 percent increase in tariffs when NAFTA ends, retailers would see their costs increase by at least $1 billion in direct impacts alone. Indirect effects would boost that figure. To make up for this deficit, retailers will have to list their

To do this, our government should choose to give in to only some of U.S. president Donald Trump's demands. This will ensure that NAFTA continues to have a positive impact on the Canadian government. This new deal like the last one signed in 1994 will guarantee that all three countries thrive on NAFTA and its benefits. Although this deal may not seem ideal, we as Canadians must remember that this deal is better than not having a trade agreement. So, I propose that the Canadian government meets some of the demands set out by The United States Of America to certify that we, the future generation can live in a peaceful country that is not burdened by extremely high prices, poor relations, a lack of jobs and an economy that is destined to fail. This new and improved NAFTA will ensure that we, the future will live in prosperity and success guided by a rising nation that is growing larger and stronger by the