This report has been authorised by Sajid Anwar (Course Coordinator for BUS708 – International Trade and Finance) for completion in trimester 1, 2014, at the University of the Sunshine Coast. The purpose of this report is to examine the North American Free Trade Agreement (NAFTA) and the consequences of such an agreement on the American textile industry.
No primary data or information could be obtained for the completion of this report. Due to budget and time restraints, no primary research was conducted for the development of this report; all information in this report has been obtained from secondary sources.
This report provides information on the North American Free Trade Agreement and its implications for the key players; the US, Mexico and Canada. It has long been argued that the US textile industry suffered great decline due to NAFTA and that it has promoted an unfair advantage for the sector. This report will describe the loss of jobs and migration of US textile jobs to Mexico. It will furthermore identify the key players that benefited from NAFTA as well as discussion wether to protect vulnerable industries such as the US textile industry. To conclude, this report will provide recommendations that are based on the information given in this report.
2 Background information
In June 1990, the United States president George H. W. Bush and Mexican President Carlos Salinas entered into an agreement, which would create a free trade area between the US and Mexico. Later on, Canada joined the agreement despite fears that the existing agreement (1989 Canada- US Free Trade Agreement) between the US and Canada might be weakened. The agreement was called North American Free Trad...
... middle of paper ...
...lly, there are only a few industries deserve this kind of protection, but it would take a long period of time to discover.
In conclusion, the introduction of NAFTA has a large impact on certain industries. As seen in this report, there were players who benefited from the agreement and some who experienced a negative downturn. This report has identified the North American Free Trade Agreements and its practices and origin. It has furthermore identified the losses and migration of jobs in the textile industry that followed the introduction of the agreement. The affected key players were identified as well as country-specific information on how the agreement affected them. Lastly, this report concludes with discussion on wether countries should work to protect vulnerable industries such as the textile industry as well as where the responsibility lies.
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