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The Pros And Cons Of NAFTA

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The North American Free Trade Agreement (NAFTA) is a three-country accord negotiated by the governments of Canada, Mexico, and the United States that entered into force in January 1994. NAFTA’s terms, which were implemented gradually through January 2008, provided for the elimination of most tariffs on products traded among the three countries.
Liberalization of trade in agriculture, textiles, and automobile manufacturing was a major focus.
The deal also sought to protect intellectual property, establish dispute-resolution mechanisms, and, through side agreements, implement labor and environmental safeguards. The goal of NAFTA was to eliminate barriers to trade and investment between the U.S.,
Canada and Mexico. The implementation of …show more content…

export markets in 2015. Imports from Canada ($295.2 billion) and Mexico
($294.7 billion) increased from $151 billion in 1993 to $590 billion. That's 26 percent of total
U.S. goods imports.
NAFTA boosted trade by eliminating all tariffs between the three countries. It also created agreements on international rights for business investors. That reduced the cost of commerce. It also spurs investment and growth, especially for small businesses. Lower tariffs also reduced import prices. That also lessened the risk of inflation and allowed the Fed to keep interest rates low. In addition, the trade lowered prices. Mexican oil is imported for less than before the agreement. That reduces U.S. gas costs. It also decreases reliance on oil from the Middle
East. Lower gas prices mean food can be transported more cheaply, reducing grocery bills. Farm products also reap the benefits of NAFTA's lower tariffs. That's especially important for oil prices since America's largest import is oil.
NAFTA boosted U.S. economic growth by as much as 0.5 percent a year. The sectors that benefited the most were agriculture, automobiles, and services. U.S. farm exports to Canada and Mexico grew 156 percent. That's compared to a 65 percent increase in farm exports to

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The North American Free Trade Agreement, otherwise known as NAFTA, is an international trade agreement between Canada, Mexico, and the United States, designed to remove tariff barriers between all three nations. Signed in the January of 1994 with final implications made in 2008. This has created substantial economic growth for Canada and its other two counterparts. NAFTA has increased trade for the Canadians, and as a result has created lots of jobs for Canada. Overall, NAFTA has been extremely beneficial for Canada since it was established in 1994.

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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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Since the FTA had shown such great results for Canada as well as the US, the partnership then extended to mexico, further establishing bonds between Canada’s new trading partner. “ The NAFTA superseded the Canada-U.S. Free Trade Agreement (CUFTA), which had come into effect five years earlier on January 1, 1989. At that time, Canada and the United States signed an historic agreement that placed them at the forefront of trade liberalization.” (Government of Canada, Foreign Affairs Trade and Development Canada, Deputy Minister of Foreign Affairs, Assistant Deputy Minister Corporate Planning, Finance and Information Technology, Deputy Minister of International Trade, Area Management Office. Web.8 Dec. 2015) NAFTA was established only a short five years after the FTA was first signed, the effects from the FTA greatly encouraged NAFTA to then be established so close in time.

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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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In 2015, over 78% of Canadian exports were sent to NAFTA partners. It was inevitable that Canada would have to form some trade agreement with the United States, simply because of the fact that it is the only country Canada shares a border with, and it would only benefit both countries by forming some kind of trade agreement. With that, it connects to the

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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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This treaty has been in effect since January 1, 1994. NAFTA was signed to help raise the standard of living for people in Canada. The North American Free Trade Agreement is one of the largest free trade zones. It has laid the foundations for a very strong economic growth and rising prosperity for Canada. NAFTA was designed to remove tariff barriers between Canada, Mexico, and

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Both articles discuss what purpose The North American Free Trade Agreement (NAFTA) should serve. However, the authors have different views regarding NAFTA. I am analyzing the second article because I appreciate the way the author portrays NAFTA. The author, Mark Milke, focuses on the benefits of the free trade agreement by using normative, positive, and analytical statements. These statements help him further the case he is making in his article.

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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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The North American Free Trade Agreement (NAFTA) is an agreement between the United States, Canada and Mexico that sets the rules for international trade and investment. NAFTA region is home to 444.1 million people, 33.3 million of whom live in Canada, 304.1 million in the United States, and 106.7 million in Mexico and producing $17 trillion worth of goods and services. Trade has increased between these countries since NAFTA was put into effect in January, 1994 (United States Trade Representative, “North American Free Trade Agreement”). Opponents of NAFTA include labor groups, environmental, consumer and religious groups. They worry that NAFTA will encourage companies to find the lowest wages possible, destroy American jobs and threaten democratic

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The signing of the NAFTA agreement led to a high migration of Mexicans into the United States. Although there were restrictions in the migration process, a lot more people found their way into the US as compared to the time when NAFTA had not been ratified. This move seemed to benefit only the United States. There was a kind of exploitation of the poor Mexicans who went to seek employment opportunities in the American soil. Companies would hire the Mexicans in the lowly placed jobs and underpay them.

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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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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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It was meant to protect the US industry but ended up having the opposite effect. It was initially supposed to raise the tariffs on some agricultural products, however it ended up ruining US trade with Europe. It made it difficult for other countries to export their goods to the US, so they imported less goods. Since there was less

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