Pros and Cons of NAFTA

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NAFTA is a trade agreement signed by the North American nations of Canada, Mexico and the US. In terms of combined GDP between the countries, it has created the largest trade bloc in the world. The NAFTA is a result of many years of negotiations, starting in 1986 under President Ronald Reagan, and finally signed on the 17th of December in 1992 under President George H. W. Bush. It became fully implemented in 2008 under President Barack Obama. The trade agreement was largely implemented as a result of the growing global trend towards free trade between countries. The economies of these three countries have been interdependent to a degree for a long time. Because of these reasons, the NAFTA has eliminated almost all tariffs between the US, Canada and Mexico, and helped lessen the difficulties previously imposed upon free trade and investment in North America. In doing so, it has both helped and damaged the economies of its countries. Although it has increased trade in North America, reduced grocery and oil prices and increased foreign investment, it has also lost the US jobs, led to the exploitation of Mexican workers and created a multitude of environmental issues. The NAFTA has dramatically increased trade between Mexico, Canada and the US. It has tripled from an amount of $297 billion USD in 1993 to $1 trillion USD in 2007. This is due to the provision is NAFTA that have eliminated trade barriers, which has spurned foreign investment. Before NAFTA, businesses had a more difficult time trading with partners just across the border to Canada or Mexico. Tariffs prevented the trade between these nations from reaching their zenith, and NAFTA has helped curtail this trend. Some industries are simply more profitable to pursue in the ot... ... middle of paper ... ...rth American Free Trade Agreement (NAFTA) —." USDA Foreign Agricultural Service (FAS). Web. Robert, E. Scott. "The high price of 'free' trade."Economic Policy Institute. N.p., 17/11/2003. Web. Rothstein, Jesse, and Robert E. Scott. "NAFTA and the States—Job Destruction Is Widespread (EPI Issue Brief #119)." Economic Policy Institute. 1 Sept. 1997. Web. Slait, Jackie. "The Environmental Impact of NAFTA." Valli Sharpe-Geisler for Secreatary of State. 16 Sept. 1997. Web. Strachan, Maxwell. "U.S. Economy Lost Nearly 700,000 Jobs Because Of NAFTA, EPI Says."Breaking News and Opinion on The Huffington Post. 15 May 2011. Web. "The Problems of NAFTA." NAFTA Customs. Web. Tiemann, Mary. "NAFTA: Related Environmental Issues and Initiatives." Foreign Press Centers. 1 Mar. 2000. Web. "World Crude Oil Prices." U.S. Energy Information Administeration. 2 June 2011. Web.

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