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The Pros And Cons Of NAFTA

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Since its implementation by the United States, Mexico, and Canada in January 1994, the North American Free Trade Agreement has primarily provided for the elimination of tariffs on products, liberalized trade in agriculture, textiles, and automobile manufacturing, and implemented labor and environmental safeguards. Now, almost twenty-three years later, most artificial obstructions to free trade and investment between the countries involved, primarily the United States and Mexico, have been dismantled and as the result of this agreement, trade among these two countries has increased from roughly $290 billion in 1993 to more than $1.1 trillion in 2016 (McBride and Sergie 2017). However, while this accord, also known as NAFTA, has brought a diverse …show more content…

When evaluating NAFTA through Aristotle’s proposed ethical criteria, it has clearly performed unsuccessfully at fairly distributing the benefits and resources created throughout its implementation over the past twenty-three years.
Although NAFTA brought growth to the gross domestic products of both Mexico and the United States, and fostered an increase in job creation and productivity as well as both imports and exports between the two nations, the percentage increase of both gross domestic products is significantly greater with respect to Mexico, and the trade balance as well as overall job growth heavily favored Mexican markets (Congressional Budget Office 2003). While a portion of these unbalanced effects can be attributed to various Mexican …show more content…

According to the Congressional Budget Office’s report concerning the effects of NAFTA on U.S.-Mexican Trade and GDP (2003), “the expanded trade resulting from NAFTA has raised the United States’ gross domestic product very slightly [and] the effect on Mexican GDP has also been positive and similar in magnitude” (pg. 5.), which signifies that the North American Trade Agreement, at least partially, adheres to the ethical justice criteria, as it has ensured an equal opportunity and equality in the specified economic area for both countries involved. In addition, the North American Free Trade Agreement has also increased labor productivity for Mexico and the United States, as signified by the stimulation of both Mexican industrial plants throughout the North (Villarreal and Fergusson 2017) and the dissemination of new production and distribution techniques across the United States (Hufbauer and Cimino-Isaacs 2016). While the specific type of dissemination in which the improvements in labor productivity occured differs slightly among the two involved countries in this deal, the proponents of equality and justice still clearly remain. Among the other distributions of this accord are the increases in exports and imports between both Mexico and the United States,

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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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Ever since the NAFTA trade agreement was signed in 1994, it has created huge economic growth between all three countries. Among the three countries, an increase in trade has boosted the Canadian

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This news article is connected with Mexican history many ways, but none more important than its relationship with the holiday Cinco de Mayo, with the recent start up relationship with NAFTA on January 1st, 1994. NAFTA’s goal was to get rid of the barriers on trade and investment between Mexico, U.S., and Canada. All were successfully eliminated other than the ones pertaining to agriculture. All three countries had separate agreements with each other, which have affected Mexico’s economy indefinitely. The agreement brought a stop to the tariffs on more then half of Mexico’s exports to U.S. and half of U.S.’s exports to Mexico.

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NAFTA has had a beneficial effect on the automotive business, “NAFTA helped the U.S. auto industry survive”(Hanson), without the help of this trade agreement cars would be produced at a much higher opportunity cost. Although now, the U.S. is able to trade with Mexico and Canada who are both making car parts at a lower price while still producing efficiently, “The U.S. auto industry designed a very efficient production network that spanned the U.S., Mexico and Canada. ”(Hanson). The trade agreement made products from Mexico and Canada cheaper to import. ,“NAFTA increased farm exports because it eliminated high Mexican tariffs”(The Balance).

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With tariffs and surtaxes placed on goods, this allowed the three North American countries to trade freely. For Mexico, the NAFTA deal was designed for poor people to not move to the U.S because the economy in Mexico would be stimulated. For Canada this was considered to be a plus for the economy. Jobs were expected to increase, revenues streams flowing into the country expected to soar and the national debt expect to drop significantly. Instead what happened was that many jobs were being lost because foreign companies have moved back to their respective countries.

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If I didn't believe that, I wouldn't support this agreement.” NAFTA has constructed more jobs in different sectors from automotive to energy and agriculture. Jobs are also established in areas of

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The goal of NAFTA was to eliminate barriers to trade and investment between the U.S., Canada and Mexico. The implementation of

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There are many debates regarding NAFTA although it is considered to be the largest free trade agreement. By terminating tariffs, NAFTA rises investment opportunities. “The efforts of those opposing NAFTA were unsuccessful because President Clinton effectively did what all presidents before him have done when in need of congressional support. He cut deals with and twisted the arms of members of Congress in order to win the day.” (Livingston & Wink, 1997).

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However, this device was not effective due to the fallacies. During his State of the Union President Trump continued to trash the NAFTA trade deal when boasting on the fact he was able to replace it with a new trade deal USMCA. However, “The USMCA is a modest reworking of NAFTA launched in 1994, with about 85 to 90 percent the same” (Kessler et al., 2020). Considering the similarities, this fact proves this rhetorical device to be ineffective. Once again, reporter Megan Cassella said “The independent U.S. International Trade Commission found the pact would create 176,000 jobs across all sectors and raise U.S. GDP by 0.35 percent by the sixth year after it enters into force.

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The NAFTA has increased illegal immigration in the United States, “With the reduction of tariffs, NAFTA also allowed

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The North American Free Trade Agreement, more commonly known as NAFTA, did not only increase the international trade between United States of America and its two border countries dramatically, but more importantly helped reshape the United State’s economy, and once again ensure it as the dominant financial gatekeeper of the world. This act of creating “the largest free trade zone in the world”, proposed by the 42nd U.S. president Bill Clinton, a proclaimed New Democrat, has affected American culture internally in ways that no other foreign policy has to date.

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“George H. Bush and Bill Clinton’s dream of NAFTA is finally starting to come to fruition. NAFTA was philosophically partly based on the premise that uniting the economies of Mexico the United States and Canada through trade would create a larger economic market to compete with China. Practically it was also based on the idea that if the Mexican economy grew rapidly, fewer Mexican immigrants would come into the United States.” (2013) “According to Gary Hufbauer, a Senior Fellow at the Peterson Institute for International Economics, “U.S. trade with its North American partners grew 156 percent in 20 years. Of course all three economies are larger: real North American gross domestic product grew 70 percent between 1993 and 2013 But real two-way trade grew faster than real gross domestic product, by a margin of 86 percentage points.””

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The TPP, also known as the Trans Pacific Partnership agreement, regarded as the most brazen corporate power grab in history(Hedges), is a document that at face value which intends to bring major trade benefits and promise to improve the overall economy’s well being. But when deeply analyzed and viewed critically, the document is the most corrupt and ultimately unfair “agreement” that has been proposed in all of history, according to many different writers and analysts. The deal includes a total of the 12 Pacific Rim nations, including the United States and allies such as Australia and Japan(to name a few), who are all “striving” to improve the economy and business between each other and the world. With the common goal, as stated before at face value, promises to create even more jobs, improve economic and market conditions,

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The delegation from Mexico has asked to find solutions on food safety, telecommunications, and anticorruption. Although Congress has not submitted a clear proposal for Washington’s stance in the trade deal, the team from the United States are pushing to perform the president’s agenda of America first. The broker believes it very unlikely the U.S. will abandon the trade deal. Some Canadian officials have expressed some pessimism over Washington’s abstinent view on some of the renegotiating terms. One Canadian confessed he was feeling pressured to capitulate to Washington’s demands, and hoped he would not have to walk away from such a treatise.

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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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