International business3-task1

During a recent lunch , my lunch mates and I began a debate about NAFTA When the North American Free Trade Agreement (NAFTA ) between Canada Mexico and the United States became effective in 1994 , some politicians and economists predicted that it would result in the wholesale loss of American jobs to Mexico . This has occurred somewhat . Various kinds of jobs have been lost , but they are primarily jobs held by very low-income workers . NAFTA has also had an effect on trade between the three member nations in the years since it was adopted . This

has been a generally favorable effect for all involved . Although the United States does have a growing deficit with Canada and Mexico , primarily with the auto sector in Mexico , many imports do not compete with imports already in the United States

However , there has been an effect on Caribbean nations , such as Jamaica and Trinidad , who were not included in NAFTA . Those nations do not enjoy the same favorable import laws that Mexico does . Therefore , it is more beneficial for producers to locate themselves in Mexico than in other Caribbean nations . Although there has long been discussions of creating laws that would create some kind of parity for other Caribbean nations desiring to trade with the United States , since before NAFTA was even a reality , nothing of such sort has come to pass

All things considered , I do not believe that it is too early to tell whether or not NAFTA will be considered a success of the long haul . In the long term , Americans will eventually see that NAFTA has improved the economy . Although low-income and uneducated positions have been lost to many people in Mexico , over the long term this has enabled the United States to continue to improve as an industrialist nation

WORKS CITED

Office of NAFTA and Inter-American Affairs : International Trade Administration ? Market Access and Compliance (2004 . Retrieved December 5 , 2005 from HYPERLINK "http /www .mac .doc .gov /nafta http /www .mac .doc .gov /nafta

NAFTA Secretariat (2004 . Retrieved December 5 , 2005 from HYPERLINK "http /www .nafta-sec-alena .org /DefaultSite /index_e .aspx http /www .nafta-sec-alena .org /DefaultSite /index_e .aspx...