Mexico’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.
Throughout 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
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)
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.
When 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.
NAFTA and the Labor 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.
MAQUILADORAS AND THE NAFTA'S IMPACT:
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.
A 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.
The 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 ...
The 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.
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.).