Canada and Mexico's Viewpoints of NAFTA

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Canada and Mexico's Viewpoints of NAFTA

When the Canada/U.S. free trade agreement came into effect, the

Mexican's were very impressed by the provision and opportunities that opened for

both sides. Mexico then approached the U.S., seeking to form a similar

agreement with them. This brought forth a new issue in Canada, should they let

Mexico and the U.S. form an agreement without them? Or should they participate,

thus transforming their deal with the U.S. into a trilateral agreement including

Mexico.

On June 12, 1991, the trade ministers of Canada, the United States and

Mexico met in Toronto to open negotiations for a North American Free Trade

Agreement (NAFTA). This was an historic occasion. For the first time ever, a

developing country agreed to sit down with two industrial countries to craft an

agreement that would open its economy to full competition with the other two

countries. If successful, the agreement promised to make the whole North

American continent into one economic zone and set an important precedent for

trade and economic cooperation between the wealthy countries of the North and

less developed countries of the South. The challenge before them was both

exciting and daunting.

A little more than a year later, the three trade ministers met again in

Washington, to put the finishing touches on a new North American Free Trade

Agreement. In just over a year the negotiators from the three countries had

successfully met the challenge and put together a new trading frame work for

North America. The North American Free Trade Agreement (NAFTA) was set to be

implied.

The North American Free Trade Agreement often raises questions regarding

the new economic trading blocs around the world. The twelve-nation European

Community (EC), a Central American free trade zone, and a four-nation South

American group, as well as preliminary discussions regarding an Asian trading

bloc, all point to the fact that new economic realities already exist. NAFTA

promises to have a major impact on the people in all three nations. There will

obviously be short-term costs of adjustment, which will certainly hit some

industries, regions, and workers harder than others. There will be definite

winners in the agreement, and definite losers in the agreement. There even

might be disputes. Whether as workers, investors, consumers, or ordinary

citizens in all three countries they may be affected. The final verdict on the

North American Free Trade Agreement, may in fact not fully be realized for many

weeks, months, or even years. However, in the following essay, the advantages

to both Mexico and Canada will be analyzed, as well as the disadvantages to

Mexico. It is safe to say that the advantages clearly outweigh the

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