The Pros And Cons Of NAFTA

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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.
North American Free Trade Agreement (NAFTA) is a trilateral free-trade deal that came into being in January 1994. NAFTA was signed on December 17, 1992 by U.S. President George H. Bush, Mexican President Carlos Salinas de Gortari, and Canadian Prime Minister Brain Mulroney. The central purpose of this agreement was to eliminate most tariffs on produces traded between the United States, Mexico, and Canada. NAFTA subsequently created the largest world free trading area, which linked more than 250 million people in the region and whom produced $17 trillion worth of good and services (Sergie). About one-fourth of U.S. imports, (especially crude oil, machinery, gold, vehicles, fresh produce, livestock and processed foods), comes from Canada and Mexico, which are the United States’ second- and third-largest suppliers of imported goods. In addition, about one-third of U.S. exports; particularly machinery, vehicle parts, mineral fuel and oil, and plastics are destined for C...

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...nd Jeffrey Schott of the Institute for International Economics estimated that the agreement could add 170,00 jobs to the U.S. labor market by the year 2000, while Clyde Prestowitz of the Economic Strategy Institute estimated a loss of 42,00 jobs over the same period of time.
In the end, NAFTA was and is highly criticized. NAFTA was criticized how its affects or lack of affect on the Mexican economy and the promises were made when NAFTA was created. Even with these criticisms, NAFTA has done a relatively good job of creating an open and free trade network between the U.S., Canada and Mexico. It has also increased industrial integration between the countries in involved because of the shared information between them. In the near future, NAFTA will need to be look at again to fix these criticisms and that will allow for a stronger trade agreement between the nations.

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