If NAFTA made this agreement, people would be able to move about Canada, the United States, and Mexico with ease. The unskilled workers in Mexico would migrate to "El Norte," looking for higher paying jobs. The supply of workers in Mexico will drastically decrease. Only the terminally ignorant, or those with families in Mexico, would stay in a poor country and earn low wages. On the other hand, the United States' supply of workers will increase drastically. Canada's supply of workers would not be changed dramatically, because it is so similar to the United States, only further away. The amount of workers moving from Canada to the United States and vice versa would not be severely affected, however, if the United States' supply of workers becomes too great then workers might migrate north to Canada to find jobs.
The main goal of NAFTA agreement was to eliminate trade barriers and open the door for investment among the member countries - the U.S., Canada, and Mexico. The differences between the economies of three countries presented the big space for benefiting from the agreement. Thus, Mexico took advantage of improving economic situation in the country and reducing the poverty rate by creating more workplaces. The U.S. and Canada got an access to enter Mexican market and hence the opportunity to align export and import procedures with the country. North American Free Trade Agreement (NAFTA) allowed Mexico to speed up the economy development process in the country. Due to the increase of the investment into industrial and services sectors of the country, the unemployment rate was reduced, and the overall level of GDP increased. NAFTA allowed exporting the goods from America and Canada to Mexico with the tariffs and trade barriers eliminated. The Mexico got an access to enter the U.S. market, which represents 80% of Mexican export. However, NAFTA has both advantages and disadvantages. Still, there are some disagreements between the countries regarding the free
Mexican writer Carlos Fuentes has seen his country’s political and economic ups and downs for more than half a century and says in his recent book, “A New Time for Mexico,” that NAFTA institutionalized the growing relationship among the three North American economies.
The 1994/1995 financial crisis in Mexico affected me in a very personal way. My family is from Mexico City, and my dad owns a small private firm that specializes in manufacturing tools. After the devaluation, I not only watched my father struggle with the failing economy and lack of business growth opportunities, I also witnessed a country begin to sink deeper into poverty and despair. There are many reasons for the devaluation, but one of the main ones is probably the “poor savings rates and the low rate of investment (only saved 19 percent of GDP from 1980-1994)” (Bloomburg). Low levels of social development and high levels of poverty consistently served as a drag to economic growth and reform measures.
According to Council on Foreign Relations (2011), North American Free Trade Agreement (NAFTA) represents an explicit trilateral free trade agreement, which was implemented in January 1994, and was given a signatory by the Democratic President, Bill Clinton. The major focus was to remove the various trade tariffs that were imposed on all products within Canada, Mexico and United States (U.S). The agreement conditions required that the tariffs be eliminated gradually. However, the agreement final aspects were not implemented completely until January 1, 2008.
Those groups who bled and died from 1910-1917 for a more just and equitable Mexico were subsequently denied the fruits of economic growth and transparent political representation. Efforts to accelerate growth since the mid 1930s “have tended to produce- or at least, to reinforce- a highly inequitable pattern of income distribution” (Hansen 71). According to Roger Hansen, the author of The Politics of Mexican Development, “no other Latin American political system has provided “more rewards for its new industrial and commercial agricultural elites” (87) since 1940 and “in no other major Latin American country has less been done directly by the government for the bottom quarter of society” (87). Mexico’s development created a middle class and brought a certain measure of industrialization but further disenfranchised the poor.
Whenever there is a problem in other countries the United States is always willing to help, but at the same time reassure the world that the United States is a friendly country which cares about the well-being of other individuals who are not American citizens. The message sent to troubled nations in times of difficulty is always the same; the U.S is always providing a helping hand with “no strings attached” or at least that is what they try to make individuals believe. However, in reality the United States helps other countries because by doing so the U.S will gain certain benefits and rights. Take for example the aid that the U.S sends over to Mexico in order to help Mexico combat the drug industry, at first sight this seems like a good deed from a friendly neighbor; however, there are several reasons why politicians here in the United States authorize that aid. As described in “The Media-Entertainment Industry and the “War on Drugs” in Mexico” the
NAFTA or the North American Free Trade Agreement was an agreement signed by the United States, Mexico and Canada. The agreement created various trilateral rules which would determine the course of trading activities in the region and the benefits that would emerge as a result of the trade. There are various aspects that are characteristic to the agreement reached by these three nations depending on the variables that are characteristic of the individual nations. The agreement has helped the three nations develop rapidly by eliminating various factors that limit aspects like trade and development.
In 1994, the United States, Canada, and Mexico, signed and established the North American Free Trade Agreement (NAFTA) which created a trilateral free-trade zone in North America that eliminate most tariff and non-tariff barriers on trade and investment between the three nations. The North American Free Trade Agreement purpose is to encourage economic activity and sets the rules of trade and investment between the three nations. NAFTA especially impacted the agriculture sectors of each country, but tariffs were also reduced on items like automobiles and textiles. With the North American Free Trade Agreement came into effect, the three countries laid a strong foundation for economic growth, job creation, better prices, better selection in consumer goods, increases wealth and competitiveness, delivering real benefits to families, manufacturers, farmers, workers, and consumers.
NAFTA, or the North American Free Trade Agreement is a regional economic alliance started by President Reagan in the late 1980s, and established in 1994 under President Bill Clinton. NAFTA created a trade zone allowing the free flow of goods between the member countries of the United States, Mexico, and Canada (Schermerhorn & Bachrach, 2015). Goals of NAFTA were identified in Article 102 to include increased regional trade and investment, increase employment and improve working conditions and living standards in each country, framework for the conduct of trilateral trade relations and for the management of disputes, strengthen and enforce environmental laws and basic workers’ rights, and work together to promote “further trilateral, regional,
The North American Free Trade Agreement is a pact that brought on a huge trend of trade agreements and spurred globalization throughout the world. It superseded the 1988 Canada-United States Free Trade Agreement, and was intended to bring Mexico into the trade agreement and make a huge trilateral hub for business and trade, with many benefits for each country. However, NAFTA raised some complications in many aspects of life for most people living in Mexico.