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Benefits and costs of NAFTA
Benefits and costs of NAFTA
Benefits and costs of NAFTA
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NAFTA On the 1st of January 1994, the North American Free Trade Agreement (NAFTA) came into effect. It eliminated all the major tariffs amongst the countries , of the United States, Canada and Mexico. It has been considered positive by all the major outcomes, but nobody takes in consideration what is really happening. Mexico being our brother country is being negatively impacting its resources, land, and people . Cheap labor and awful working conditions keeps America sky high in its economy. There are many ways that one can change this agreement and make it just for the economy of each country. NAFTA was first created with a different illusion and an aspect of making the North American economy a beautiful place to be in. People would have the cheapest foods, electronics and cars because everything would be tax less and we would help each other manufacture it. Even though his sounds relevant it never became this way, everything in this agreement was stepped down and though twice about by the mexican people. American being as stubborn opens new maquiladoras and creates a rapid growth phenomenom near cities where theses sweat shops quickly open(McLymont, pg3). Canada never gets contemplated with this agreement, reason being is because it is closer to America and their system is also running on the buying and shipment of Mexican goods(Fanjul, Fraser,pg3). Mexico has always been under the United States control. From the land we took in the past wars from them to the agreements they sign to be friendly. The NAFTA agreement wich promised to trade the products for free from Canada to the United States and Mexico had many arguments to come. It was suppose to lower tarrifs and keep equal trade beetween North America(McLymont, pg6). But nobody knew that trade from the United States was going to be demanding and cause many issues from labor to land therefore being negatively impacted. Now the mexican workers and farmers have to deal with issues that the United States created. They struggle in these working conditions and dont know what to do. Theyre only bet is leaving theyre country and to seek a better lifestyle. Mexico is the country which NAFTA underpins because its beautiful lands and unique soil, wich they have been growing products over thousands years. The united states has a big increase in importing of goods, but behind all this there is an affect on the farmers, workers and land(Fanjul, Fraser,pg2).
When the U.S. took over the land, they offered citizenship to the residents as part of the treaty ending the Mexican-American War. Things weren’t good for them; they didn’t have equal treatment. Many lost their lands due to unfamiliar American laws and when they lost their land, they lost their status as well. They were not treated as equals of Anglo citizens. They had separate restaurants and even separate schools.
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.
We treat them as if they belong to us; they are their own country. We are forcing them to give us something that is rightfully theirs. Mexico is a weak country, and we are a strong country. For example, in the Revolutionary War the odds were against us, the British were strong and we were weak. They came into our territory thinking they could push us over, but it turned out to be just the opposite.
Mexicans have faced problems ever since 1492, when the expansion of the Spanish took on full force. Ever since, they have continued to encounter many more, which involve discrimination and oppression. Their history concerning Spanish conquest and colonization, and their migration into the United States was very troublesome, and it has not improved that much either.
As outlined in "Foreigners in Their Native Lands", articles VIII and IX proclaimed all citizens in the newly annexed area would be allowed to move to Mexico if they chose to, and would have all of their property maintained by them with no levies or taxes placed upon their burdens (Weber, p.163). Noteworthy to mention was the fact that there was originally an article X, in which it was declared that all Mexican land grants would be maintained on the transfer of power. Looking back, it is clear as to why this was removed. Over the course of the next 40 years, Mexican-Americans had their lands slowly stripped away from them by a combination of bureaucratic red tape and a law system that they did not fully understand. The responsibility of approving land grants fell upon the federal government, and produced a slow and agonizing process that frustrated both Mexican-Americans and Anglo-Americans alike.
After three years of debate NAFTA was established in 1994. Fears concerning NAFTA included job creation, loss and transfer, wages and infrastructure. (Ganster/Lorey 188-189) However, with the implementation of NAFTA the economy grew. Ganster and Lorey reveal that bilateral trade increased by $211.4 per year from 1989 to 2004. Commerce grew by 20 percent in the first six months of 1994. There were advantages and disadvantages of NAFTA, nevertheless, NAFTA “intensified the integration of the two economies rather than distancing them.” (Ganster/Lorey 190)
With trading through U.S and Mexico, Canada has been greatly growing the economy. Companies in Canada can import products which are cheaper and more reasonable to sell to Canadian consumers, so that they are able to make more money than they manufacture the products themselves. Moreover, NAFTA has created jobs. When people think about NAFTA has created a lot of jobs in variety industries, they always think that only people who are living in the country will get benefits of that. Nevertheless, it is not. Also, companies have a benefits of creating jobs by NAFTA because creating jobs means that a company has more opportunities to manufacture products by increased employees and
Prior to NAFTA (Inc. April 2006), “… tariffs of thirty percent or higher on export goods to Mexico were common, as were long delays caused by paperwork…. NAFTA addressed this imbalance by phasing out tariffs over 15 years. Approximately 50 percent of the tariffs were abolished immediately when the agreement took effect, and the remaining tariffs were targeted for gradual elimination.” According to Kimberly Amadeo (2015), article 102 of the NAFTA agreement outlines its purposes which is to “Grant the signatories Most Favored Nation status, eliminate barriers to trade and facilitate the cross-border movement of goods and services, promote conditions of fair competition, increase investment opportunities, provide protection and enforcement of intellectual property rights, create procedures for the resolution of trade disputes, and establish a framework for further, trilateral, regional, and multilateral cooperation to expand the trade agreement’s benefits.”. This quotation, condenses the agreement by stating that the intentions of NAFTA which was an agreement created to ease trade on imports and exports, by eliminating tariff barriers, in order to encourage competition and venture opportunities. Although, free trade is supposed to bring wealth, strength, and prosperity it should also
Have you ever been stripped of your heritage and treated like a foreigner in your own homeland? Hopefully not, but if you’re a Mexican American citizen then you may have an idea of what it’s like to be treated in such a manner. For many years, what is now considered to be the Southwest United States, was owned and inhabited my Mexican citizens. These people had lived on this land for generations, many making a living raising cattle and cultivating the land. However, due to Mexico’s loss in a in the Mexican American War, the country was forced to give approximately half of its land to the United States. According to the Treaty of Guadalupe Hidalgo, the inhabitants of the newly acquired land were to become citizens of the United States, and were
With an untapped labor force of over forty-eight million, a bounty of natural resources, and an inferior government, Mexico is simply ripe for the picking. The conquest for the Mexican America will undoubtedly include the enslavement of the people and the development of resources and land. Not only will this provide an effective end to illegal immigration that rushes through our vast southern border, but also an incredible opportunity for the United States to flourish economically, politically, and socially.
from this trade agreement is a significant risk, it is slightly offset as there is still a likelihood that the U.S. government would negotiate a new bilateral trading relationship with Canada directly. In fact, prior to NAFTA, there was already a free trade agreement between the two countries known as the Canada – United States Free Trade Agreement (FTA) which was signed in 1988 (“The World Factbook: Canada,” 2017). The trading relationship between the two countries is simply significant and it is inconceivable that an adequate replacement, which would address the concerns and flaws of NAFTA, would not be found. Furthermore, President Trump has stated that some of his concerns with NAFTA include the migration of U.S. jobs and factories to Mexico, meaning that the trading relationship with Mexico is of a bigger concern and a renegotiation of NAFTA would affect the U.S. – Mexico relationship more than it would affect the U.S. – Canada
The NAFTA is involved in this phenomenon because since the agreement involves Mexico it in turn creates job opportunities for the Mexicans and on top of that Mexican workers are part of an underdeveloped country which in turn means they are going to get less money due to the condition of their economy. And for American businessmen that is a very desirable quality in a potential employee due to how much profit the companies and factories will make simply by giving more low paying jobs to Mexicans and decreasing the American workforce. This source relates to economic globalization, because the NAFTA is essentially an economic agreement between major countries to save money and reduce trading taxes. This agreement causes an economic rise in all of these countries by causing an increase in jobs in Mexico and increasing companies’ profits in the US and
Web. The Web. The Web. " North American Free Trade Agreement (NAFTA) —. "
In 1993, the North American Free Trade Agreement (NAFTA) was signed by President Bill Clinton. It was said that Clinton hoped the agreement would encourage other nations to work toward a boarder world-trade pact. In 1994, the agreement came into effect, creating one of the world’s largest trade zones between United States, Canada, and Mexico.
The North American Free Trade Agreement was established between three countries on January 1, 1994. Nafta is an agreement between the countries of Canada, Mexico, and the United States that eliminates tariffs and encourages economic activity between these nations. As with many agreements Nafta has its shares of pros and cons but there has been more benefits come out than problems. For example, the agreement has been recognized for facilitating Americans the ability to purchase Canadian and Mexican goods. Not only has the agreement benefited the united but all three countries as well. According to the statistics released on a recent study, it was discovered that in all three nations there was a dramatic increase in trade from $337 billion in 1993 to $1.82 trillion in 2011! Not to mention the slight increase in wages for workers. Some people disagree and say that even without tariffs there are still plenty of government imposed barriers on trade. But, have they considered how it has impacted the member nations by raising the standard of living, improved environmental conditions, and increased the trading between those nations. As