The North American Free Trade Agreement or as its most commonly known NAFTA “is a comprehensive rules-based agreement between the United States, Canada, and Mexico”, that came into effect on January 1,1994. All three countries signed it in December of 1992; later on November of 1993 it was ratified by the United States congress. NAFTA was not only used in cutting down on tariffs between both countries but it also help deal with issues such as Transportation, Border Issues, and Environmental Issues between these two countries. NAFTA changed some tariffs immediately and within fifteen years other tariffs will fall to zero. NAFTA was not created to just lower tariffs it was also created to open protected sectors in agriculture, energy, automotive trade, and most importantly textiles. It also opened up the U.S. Mexico border to previously restricted areas of trade. “It set rules on government procurement and intellectual property”.
Now after it’s fourth year of existence it is apparent that it is good for Mexico and the United States. Because of NAFTA Mexico has been able to make significant changes in their economy, far more than the U.S. “The Mexican overall trade balance went from a $18.5 billion deficit it 1994 to a $7 billion surplus in 1995”. Even though American exports slipped $4 billion in 1995, the recovery of the Mexican economy in 1996, when the GDP grew 5.1%, American exports came round and grew to 20%, later to 35% thanks to NAFTA. Also because of NAFTA two way trade between the United States and Mexico has grown to 60% from 1993.
Although Mexico’s economy is making its first boom in sixteen years, it is still “economically small compared to the U.S”. Mexico’s economy has been compared to that of the size of Florida. Because of this all the hype about the loss of jobs to the U.S., especially California, have been taken over the top. According to the most recent information it was proved that NAFTA has had almost no effect on U.S. employment levels. At first when NAFTA came into effect U.S. employment levels did decrease, but within three years all employment went back up to normal. Some say that this in fact is not due to NAFTA, but to the continuing expansion of the U.S. economy.
Another aspect that has made Mexico’s economy boost is the Maquiladoras program. It began in 1995 as a side program of NAFTA, ”and set up a special cust...
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...ans of transporting goods across the border. Normally trucks are forced to wait in long lines for several hours; this is due to the lack of adequate infrastructure. This also causes polluting exhaust to escape into the air causing an even greater problem in the border air; this causes 20% of all air pollution. The 2,000-mile border separates two regions with totally different economical levels as well as environmental concerns. “The North American Agreement on Environmental Cooperation (NAAEC) was approved as a side agreement to NAFTA to insure that all parties enforce national and international environmental laws. It was also created to address any environmental problems due to NAFTA implementation. Because of this two environmental agencies have been set up to tackle these issues, they are the Border Environment Cooperation Commission (BECC) and the North American Development Bank (NADBank). They have set up mechanisms that allow community participation as well as allocated and approved funds for infrastructure projects. This in turn has created an upswing in the battle against environmental pollution along the U.S.-Mexico Border, may they be directly related to NAFTA or not.
In this essay, the author
- Explains that the north american free trade agreement (nafta) is a comprehensive rules-based agreement between the united states, canada, and mexico that came into effect on january 1,1994.
- Explains that nafta is good for mexico and the u.s.
- Explains that mexico's economy is "economically small" compared to the u.s.
- Explains the maquiladoras program, which allows certain corporations to import raw materials, equipment, machinery, and replacement parts, into mexico to attract manufacturing of goods in mexico.
- Explains that the maquiladora program has been an integral part in the rapid growth of the mexico-u.s. border region.
- Explains that the rapid growth in the border region has significantly outpaced the development of infrastructure. the 2,000-mile border separates two regions with totally different economic levels and environmental concerns.
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- NAFTA and Mexicoanalytical essayMexico’s economy is undergoing a stunning transformation. Seven years after the launch of the North American Free Trade Agreement, it is fast becoming an industrial power. Free trade with the U.S. and Canada is turning the country from a mere assembler of cheap, low-quality goods into a reliable exporter of sophisticated products from auto breaks to laptops computers. Although Mexico has seen economic growth lately, it still faces tremendous problems in the aftermath of the 1995 recession and the revolution that took place in the Chiapas which still wages on today. The purpose of this paper is to explore the effects that NAFTA has had on the economy and it’s people during the implementation of NAFTA and in what NAFTA will bring in the future.
In this essay, the author
- Explains that nafta was the last straw for the indigenous people of chiapas. their revolt was inspired by five centuries of oppression and injustice.
- Analyzes how decentralized production implies a decomposition of the industrial working class to include more marginal workers and, especially, more women. the invisibility of workers makes them politically, if not economically, marginal.
- Explains lemco, jonathan, and robson, william. ties beyond trade: labor and environmental issues under the nafta.
- Opines that the president, the peso, market and those indians. the economist 24 dec 1994: 43.
- Analyzes the impact of the north american free trade agreement on mexico's economy and its people.
- Explains that the zapatistas feared the nafta would worsen their debilitating problems. they knew the treaty would affect them personally.
- Analyzes the impact of the north american free trade agreement on mexico's environment. the impoverished border region is known for poor drinking water, inadequate sewage treatment, and mass squatter settlements.
- Introduces lourdes beneria and shelley feldman in unequal burden.
- Describes the letters and communiques of subcomandante marcos and the zapatista army of national liberation.
3032 wordsRead More - NAFTA: The North American Free Trade Agreementanalytical essayThroughout history, the United States has initiated policies, peace agreements, or laws which were believed to bring prosperity, and success, however those policies as a result were created in the U.S. best self-interest. One of these policies is known as NAFTA, which was a trade agreement created to open up free trade around the globe, however this policy backfired, deeply scaring and deteriorating the Latin American economy, and its people. Specifically, NAFTA known as the North American Free Trade Agreement, took effect on January 1, 1994 was a treaty which entered by the United States, Canada, and Mexico used to eliminate tariff barriers, in order to encourage economic prosperity between these three countries. A quarter century later, the
In this essay, the author
- Explains that nafta, a trade agreement between the united states, canada, and mexico, has brought wealth to the 1st world developed countries, but its aftermath has affected millions of people in the western hemisphere.
- States that the north american free trade agreement was intended to ease trade on imports and exports, by eliminating tariff barriers, in order to encourage competition and venture opportunities.
- Analyzes how the impact of the north american free trade agreement has resulted in a decrease in quality of living, unemployment and poverty.
- Analyzes how the effects of nafta have directly impacted the socioeconomic structure of mexico.
1078 wordsRead More - North American Free Trade Agreement (NAFTA)analytical essayNORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) Brief Overview: NAFTA, The North American Free Trade Agreement, came into existence on January 1, 1994. NAFTA is essentially a free-trade agreement between the 3 North American nations of the Unites States, Canada, and Mexico. The major thought behind this treaty was to give the citizens and the companies of the North American nations many incentives to trade between themselves. The duties on U.S goods exported to Mexico were slashed by fifty percent, and other restrictions were to be detached from a lot of categories, such as motor vehicles, computers, automotive parts, and agricultural goods. NAFTA was also put into action so to safeguard the intellectual property rights of the companies, such as patents, copyrights, and trademarks.
In this essay, the author
- Explains that nafta is essentially a free-trade agreement between the 3 north american nations of the unites states, canada, and mexico.
- Explains that the signing of the nafta was a controversial issue, even before it came into existence.
- Analyzes the impact of nafta on the labor unions and the agricultural sector of the united states of america.
- Explains that nafta has helped mexico gain the most out of all the other 2 nations. maquiladoras are labor-intensive businesses that bond the bordering nations of united states and mexican cities.
- Analyzes how nafta led to rises in salaries in the united states, canada, mexico, and mexico. it's beyond uncertainty that these economists were thorough in their analysis.
- Explains that nafta led to a significant increase in trade between the united states, mexico and canada.
- Analyzes how u.s. exports to canada and mexico in 2010 were electrical machinery, vehicle parts, mineral fuel and oil, and plastics. the united states also saw eight lac new manufacturing jobs from 1994 through 1998.
- Opines that nafta may have had many benefits, but it hasn't eliminated all the problems associated with international trade.
- Explains that nafta eliminated tariffs between the united states, canada and mexico, but it did not eliminate the many customs regulation that can suppress trade.
- Explains that it has not been easy to study the exact macroeconomic effects that have taken place over the member countries since the signing of nafta.
- Opines that the effect of nafta on canada has been similar to that of the us. employees complain that their salaries are reducing as the enterprises in canada are planning for production plants etc.
- Opines that nafta continues to be controversial, much before its origin. many economists and socialists dispute that it has done nothing more than to aid the integration of the 3 nations
- Explains that tariffs are imposed to support or dampen trade. they can also be used to hit back against a trading partner's own tariff or to show displeasure. the united states received 25% of its imports from these two countries.
- Explains that nafta encouraged significant united states investment in mexico, but maquiladoras, where mexican employees give inexpensive labor to produce u.s. goods, have a bad quality of life for workers.
1770 wordsRead More - The Pros And Cons Of NAFTAanalytical essayWhen thinking about North American and its countries it is hard not to think about the North American Free Trade Agreement. Well, it may be easy to not think about but of this essay let just say that everyone thinks about it. This trade agreement was implanted over 20 years ago and the affects of this agreement are still being talked about today. This agreement is being talked about because of the numerous criticisms it has received since in was enacted in 1994. Where the agreement was actually beneficially is not the main topic of discussion. In this essay, it will examine the main criticism of NAFTA and tried to explain how they came to be. The main argument is that NAFTA is more known for its criticism then what is has done to create better trade among its members.
In this essay, the author
- Analyzes how the north american free trade agreement has been criticized since it was enacted in 1994. the main argument is that nafta is more known for its criticism than what it has done to create better trade among its members.
- Explains that the north american free trade agreement (nafta) was a trilateral free-trade deal that came into being in january 1994.
- Opines that nafta will create more jobs than it destroys. the current trade surplus between the u.s. and mexico was simulated based on the overvaluation of the mexican peso.
- Opines that nafta was criticized for its impact on the mexican economy and promises made when it was created, but it created an open and free trade network between the u.s., canada and mexico.
- Analyzes how nafta's impact on mexico has been a source of disagreement on the success of the trade agreement.
1323 wordsRead More - NAFTA and the Labor Debateopinion essayNAFTA and the Labor Debate The Debate Since the end of the eighties and the beginning of the nineties, there has been a surge in the creation of trade agreements all over the world. The one encompassing the largest area and affecting the greatest number of people is the North American Free Trade Agreement (Text of the NAFTA, Organization of American States). The three major countries of North America signed this regional trade agreement in 1993: Mexico, the United States, and Canada.
In this essay, the author
- Explains that the north american free trade agreement (nafta) is a regional trade agreement between mexico, the united states, and canada.
- Opines that trade agreements like nafta, where manufacturing jobs are shifted from the developed world to the developing world, are necessary.
- Explains that mexico is becoming industrialized while the united states is entering a new era where the service business dominates. trade agreements like the north american free trade agreement facilitate this transition in economies.
- Analyzes how adam smith's view on division of labor is proving itself with the north american free trade agreement. the united states and mexico are engaged in the type of industry that best suits each country.
- Explains that the north american free trade agreement was designed to eliminate all trade barriers between the three countries and promote conditions of fair competition and increase investment opportunities.
- Explains that the nafta was mostly designed to take advantage of mexico's maquiladora program. they explain that they can bring as many foreign workers as they want but hourly wage earners have to be mexican.
- Explains that the north american free trade agreement was a highly controversial issue in all three countries before it came into effect.
- Explains that there are many sides to the labor dispute that erupted because of nafta. canada and the united states are developed both industrially and technologically, while mexico is still considered a developing country.
- Explains the impact of nafta on mexico and the united states. the u.s. government reports that 18 million jobs were created and 7 million lost in the us.
- Explains that mexico's increase in employment is more linked to nafta than in the united states. rates have also risen dramatically since the north american free trade agreement went into effect.
- Analyzes how adam smith tells us that the workmen want to get as much money as they can, while the masters seek to give as little money.
- Opines that the trade agreement was beneficial to both countries, but several sectors of the economies of each nation benefited more than others.
- Analyzes how the manufacturing sector has grown in mexico. it is mexico's largest economic activity second only to the commerce.
- Explains that manufacturing in the united states has remained stagnant throughout much of this decade and a greater part of the 1980’s. the highest number of workers this year is the month of october with 18,202,000 workers.
- Explains that the service occupation industry has seen a steady rise in employment over the past two decades. the service industry employment number now stands at its highest point in 1999.
- Opines that trade agreements like the one that the united states has with mexico will be the norm in the coming decades.
- Explains that mexican companies that export more than 80 percent of their production, pay 40 percent more. mexico is gaining not only with more jobs but higher paying jobs.
- Opines that the north american free trade agreement was a movement for growth instead of restraining the inevitable development of these countries.
- Cites globerman, steven, and alan rugman. foreign investment in nafta.
- Explains smith's inquiry into the nature and causes of the wealth of nations.
- Explains the secretaria de trabajo y prevision social. estadisticas laborales.
- Explains the north american free trade agreement at five years: what it means for the u.s. and mexico.
- Explains the north american free trade agreement: five years linking u.s. and mexican markets.
2959 wordsRead More - Maquiladoras & NAFTAexplanatory essayMAQUILADORAS AND THE NAFTA'S IMPACT: Introduction In this paper I will discuss the history and practices of the Maquiladora industry. I will discuss its background, its problems, the benefits it offers to United States companies, and the impact the NAFTA has and will have on the industry. In addition, I will make a suggestion on a possible strategy the Maquiladoras can adopt in order to address the challenges brought on by the NAFTA, to ensure it remains a strong force in the future.
In this essay, the author
- Describes the history and practices of the maquiladora industry, its problems, benefits, and the impact of nafta on the industry.
- Explains that maquiladoras are allowed to temporarily import into mexico (free of tax) machinery, equipment, replacement parts, raw materials, and just about anything that was used in the assembly or manufacture of semi-finished or finished products.
- Explains that pollution and hazardous wastes pose a serious health threat to residents of mexico and the bordering us states.
- Explains that maquiladoras offered foreign businesses several advantages over other forms of direct foreign investment. since nafta, many of these advantages are either being phased-out or granted to all mexican companies.
- Explains that the maquiladora program allows 100% foreign investment of mexican operations. however, mexico's foreign investment law has changed since 1989 and 1994.
- Explains that maquiladoras can receive production materials and capital goods as loans from their parent and client companies, eliminating the need to pay the mexican asset tax of 2% of all assets.
- Explains that when maquiladoras are structured as cost center, the foreign corporation pays the mexican company for operating costs plus negligible profit, avoiding mexico's corporate income tax, 10% mandatory profit sharing, and asset taxes.
- Explains that maquiladoras have always allowed mexican companies 100% duty drawback or waivers in imported components that are exported as final goods.
- Explains that the nafta's of labor created the national administrative office and the north american agreement on labor cooperation to stop labor abuses.
- Explains that the maquiladora program was established by the mexican government to provide employment for mexico's rapidly growing population along its border with the united states.
- Explains that the maquiladora industry is unorganized, with state-controlled unions representing the workers.
- Explains that maquiladoras operates at very low costs in places where the currency is weaker than the dollar. manufacturing in mexico has become necessary to battle overseas competition.
- Explains that nafta has created side agreements covering the environment, such as the north american development bank (nad bank) and the commission for economic cooperation (cec).
- Opines that the mexican currency is weaker than the us dollar, but the maquiladora industry cannot count on this for continued growth.
- Cites benitez, gerardo, clifford, frank, and mary beth sheridan, borderline efforts on pollution, the los angeles times, june 30, 1997.
2053 wordsRead More - A Discussion of the Negative Impact of NAFTA on North Americaanalytical essayA Discussion of the Negative Impact of NAFTA on North America The North American Free Trade Agreement was passed in November of 1993 and went into effect on January 1, 1994. The agreement aimed to eliminate tariffs between Canada, Mexico and the United States, leading to the eventual creation of free trade among these three countries by the year 2008. Supporters of NAFTA billed the agreement as a wonderful opportunity to create jobs, stimulate competition, and free North America from harsh and often unfair tariffs that restricted trade between the three nations. From a theoretical perspective, NAFTA appeared to have the makings of a highly beneficial relationship between Canada, Mexico and the United States.
In this essay, the author
- Analyzes salas, carlos, the impact of nafta on wages and incomes in mexico.
- Analyzes the economic and social impact of the north american free trade agreement on mexico, canada, and the united states.
- Argues that nafta has played a major role in the modernization of mexico. while free trade benefits mexican relations with the us, it fails to translate over to the global economy.
- Explains that nafta has created lopsided trade industries and substantial dependencies in mexico, canada and the united states.
- Argues that nafta cannot be solely blamed for the economic downturn facing mexico, canada and the united states.
2934 wordsRead More - History Of Mexicoexplanatory essayThe United Mexican States, more commonly known as Mexico, is a federal republic in North America. It is bordered by United States of America to the north, Guatemala, Belize and Caribbean Sea to the south. Mexico is the fifth largest country in the Americas, and the major ethnicity is Mestizo. Mexico is federation with thirty one states joined. In pre-Columbian Mexico, many cultures have advanced into civilizations like Olmec, Toltec and Teotihuacan, Aztec and more. In 1521, Spanish colonized the Mexican territory, which was controlled as the Viceroyalty of New Spain. In 1821, Mexico earned their independence, and nations recognized their independence. However, Mexico had to face some difficulties after the independence, especially after the Mexican-American War that led to territorial friction with United States of America, Franco-Mexican War, a civil war, and domestic dictatorship. In 1910, the Mexican Revolution occurred, which made their government to change their Constitution, and their political system. In 2008, Mexico’s economy was hit hard by credit crunch. However, their economy has recovered since then, especially with helps from foreign companies pouring money for investment. Now, Mexico has one of the largest economies in world. Mexico is the tenth largest oil producer in world, and also the largest silver producer in world. Mexico is counted as one of the newly industrialized country and an emerging power. By 2050, Mexico is expected to have world’s fifth largest economy, according to Goldman Sachs. They have the fourteenth largest nominal GDP and tenth largest GDP by purchasing power parity. Mexico’s economy is strongly linked with North American Free Trade Agreement (NAFTA) partners, which includes Canada and United ...
In this essay, the author
- Explains that mexico is a federal republic in north america, bordered by the united states of america to the north, guatemala, belize, and caribbean sea.
- Explains that mexico is one of the few countries that has technical capabilities to create nuclear weapons. in 1968, mexico promised to use their nuclear technology for peaceful purposes.
- Explains that mexico has the capability to create nuclear weapons, but pledged that they will only use it for peaceful purposes.
- Explains that mexico realizes that nuclear resources are useful practical in terms of getting the energy from the power plant. they believe that agreements can prevent nations from using nuclear power in non-peaceful
759 wordsRead More - Pros And Cons Of NAFTAanalytical essayThe North American Free Trade Agreement—NAFTA—was an important agreement signed between three countries—the U.S., Mexico and Canada. NAFTA played an important role between each of these countries’ relations with one another through imports and exports. Throughout the presidential elections throughout the years, NAFTA has been highly debated on whether or not it has helped benefit the economy of these countries or if it has caused a lot detrimental issues. NAFTA promised many benefits for these countries, but not all of their promises were carried through; many views across the political spectrum also have their indifferences about NAFTA.
In this essay, the author
- Explains that the north american free trade agreement (nafta) was an important agreement signed between the u.s., mexico and canada.
- Explains that nafta was signed in 1994 with the goals of eliminating tariffs, promoting free trade and bringing mexico out of poverty and decreasing the immigration numbers.
- Explains that the clinton administration envisioned that nafta would create high-wage u.s jobs that would help expand businesses and the economy.
- Explains that mexico's economy was unstable and unfair in comparison to the u.s. and canada’s economic standing. the overvalued peso in mexico caused many problems economically.
- Explains that mexican workers were making it difficult for american citizens to get a job because many companies favored cheap labor. nafta created more job opportunities for many people.
- Analyzes mckee's argument that the u.s. economy has gained 30 million jobs since 1993, but many of those jobs were ones that didn't pay well nor did they offer work benefits and protections.
- Analyzes how mexico's maquiladora plants imported materials, assembled them and re-exported them to the u.s., but the only benefit was the creation of jobs. nafta defenders recognized the flaws of the agreement.
- Explains that nafta was successful because there was an increase in trade between three countries, which caused mexican exports to the u.s. to increase by 14 percent.
- Explains that mexico's trading relationship with the u.s. was important, but it also hurt its economy.
- Analyzes how bernie sanders viewed nafta's impact as negative by witnessing poor working conditions and low wage pay in mexico. he also observed that american chain companies laid off many u.s. workers to seek low-wage labor.
- Analyzes how donald trump doesn't support nafta and plans to redirect the u.s. in a different direction.
- Explains that nafta was supposed to help benefit the u.s., mexico and canada, but it did the opposite. the benefits didn't amount to any real changes in improving the economy.
1531 wordsRead More - The Expansion of The North American Free Trade Agreement Should the United States Pursue the Expansion of NAFTA? Statement of the Problem The North American Free Trade Agreement (NAFTA) entered into force on January 1, 1994. It created the world's largest free trade area: 380 million people producing nearly $8 trillion worth of goods and services. One of NAFTA's primary objectives is to, "contribute to the harmonious development and expansion of world trade and provide a catalyst to broader international cooperation" (US Trade Rep.).
In this essay, the author
- States that the north american free trade agreement (nafta) entered into force on january 1, 1994. it created the world's largest free trade area.
- Explains that twenty trade agreements have been negotiated within the hemisphere without us participation. the eu has agreed to sign a free trade agreement with the nations of mercosur.
- Opines that it would be a great failure for the us not to take the lead in negotiating this trade pact.
- Concludes that market integration has produced more jobs than lost due to nafta.
- Opines that nafta will stimulate democratic advancements in latin america and the caribbean, where 19 of 20 nations have established institutions of democracy.
- Opines that it is time for the us to end a tiresome debate and step forward to lead the western hemisphere to global economic prosperity
- Recommends that the us take part in leading the western hemisphere into agreement in the ftaa by merging nafta, mercosur, caricom, and the andean region.
- Explains solis, luis. peace equation: the need for further regional cooperation.
- States that the expansion of nafta into central and south america will benefit us trade by reducing tariffs in one of the fastest growing regions in the world.
- Explains that us trade with canada and mexico has grown 44 percent since nafta was signed, compared with 33 percent for the rest of the world. the us must look to the western hemisphere for further economic prosperity.
- Cites clinton, bill, herman, alexis, king, robin, and maises naim. "free trade express?" the future of hemisheric intergration.
1703 wordsRead More