Nafta Pros And Cons
The North American Free Trade Agreement (NAFTA) is a very significant part of international trading in North America. NAFTA was built upon a prior 1989 trade agreement between the U.S. and Canada that was responsible for tariff reductions between the nations. There were concerns of U.S. jobs being lost in the transfer of factories to foreign nations, where U.S. companies could take advantage of cheap labor and the lack of workers' rights. Also, environmental groups became concerned that enforcing pollution laws would be difficult in foreign countries with loose environment laws.
It was specifically designed to improve trading conditions between the North American countries. The treaty was put into effect January 1, 1994 and eliminated tariffs …show more content…
Because of NAFTA and excellent trading relations with the U.S., Mexico's Gross Domestic Product has risen 5.5 percent per year for the last five years. When Mexico experienced the peso crisis, it rebounded quickly, from an $18.5 billion deficit in 1994 to a $7.1 billion surplus in 1995. The unemployment rate is down in Mexico as well as in the U.S. Mexico's urban unemployment rate is less than four percent, after having risen from six percent in 1992 to 8.5 percent in 1995. Manufacturing, construction, transportation, and communications through NAFTA connections have been leading Mexico through its tremendous success. Mexico's exports however, are the greatest factor in this booming period. In fact, it is estimated that the year 2001's real exports will be more than three times as large as when the NAFTA was signed (Orme 53). When Mexico is successful, jobs are created, and the economy is stable, there is much less of a desire for Mexicans to come illegally to the U.S. There are many opportunities in Mexico since NAFTA has influenced the market and that certainly cuts down illegal immigration. Mexico's prosperity should be a concern of all Americans. It makes for better investments and opportunities within Mexico for its …show more content…
has seen rises in exports and production. The U.S. exports for 1996 were at $190 billion. U.S. exports to Mexico and Canada were greater in comparison to any other part of the world. An estimated 18 million new jobs were created during the first five years after NAFTA was activated and the total trade in North America increased from $293 billion to $420 billion in NAFTA's first three years. NAFTA's lowered tariffs also resulted in a 37 percent increase of U.S. exports to Mexico (Orme 62). It is apparent that NAFTA has been very successful in building the economy of North American countries. GDP and employment are both accelerating and the relations between countries are as good as ever. NAFTA has continued to open the U.S.-Mexico border to increase commerce, creating very efficient international trading. As a result of NAFTA, Canada, Mexico, and the United States are all more powerful growing
It was specifically designed to improve trading conditions between the North American countries. The treaty was put into effect January 1, 1994 and eliminated tariffs …show more content…
Because of NAFTA and excellent trading relations with the U.S., Mexico's Gross Domestic Product has risen 5.5 percent per year for the last five years. When Mexico experienced the peso crisis, it rebounded quickly, from an $18.5 billion deficit in 1994 to a $7.1 billion surplus in 1995. The unemployment rate is down in Mexico as well as in the U.S. Mexico's urban unemployment rate is less than four percent, after having risen from six percent in 1992 to 8.5 percent in 1995. Manufacturing, construction, transportation, and communications through NAFTA connections have been leading Mexico through its tremendous success. Mexico's exports however, are the greatest factor in this booming period. In fact, it is estimated that the year 2001's real exports will be more than three times as large as when the NAFTA was signed (Orme 53). When Mexico is successful, jobs are created, and the economy is stable, there is much less of a desire for Mexicans to come illegally to the U.S. There are many opportunities in Mexico since NAFTA has influenced the market and that certainly cuts down illegal immigration. Mexico's prosperity should be a concern of all Americans. It makes for better investments and opportunities within Mexico for its …show more content…
has seen rises in exports and production. The U.S. exports for 1996 were at $190 billion. U.S. exports to Mexico and Canada were greater in comparison to any other part of the world. An estimated 18 million new jobs were created during the first five years after NAFTA was activated and the total trade in North America increased from $293 billion to $420 billion in NAFTA's first three years. NAFTA's lowered tariffs also resulted in a 37 percent increase of U.S. exports to Mexico (Orme 62). It is apparent that NAFTA has been very successful in building the economy of North American countries. GDP and employment are both accelerating and the relations between countries are as good as ever. NAFTA has continued to open the U.S.-Mexico border to increase commerce, creating very efficient international trading. As a result of NAFTA, Canada, Mexico, and the United States are all more powerful growing