Rate this paper
  • Currently rating
  • 1
  • 2
  • 3
  • 4
  • 5
4.75 / 4
Paper Topic:

North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement 's (NAFTA

The North American Free Trade Agreement 's (NAFTA ) foremost function is the promotion of an economy that is integrated as well as the facilitation of commerce and trade among several distinct and sovereign societies . NAFTA is said to be an agreement on investment and free trade that allows investors with certain guarantees that are deigned to intensify the direct investments made internationally and the development of factories within the area specifically in the areas governed by Canada , Mexico and the United States

It

was proposed by the leaders of three countries namely : Brian Mulroney , Canadian Prime Minister , the United States President George Bush and Carlos Salina de Gortari , the president of Mexico and was largely looked upon favorably by the leaders of these three countries due to their business interests (Bradsher 1993 ) while those who have the environmental and labor interests at the forefront primarily oppose the agreement . The NAFTA was signed on December in the year 1992 by the leaders of the three countries and is still subject to ratification in the three countries

According to economists , NAFTA yields both negative and positive effects and such views of economists can be seen in several publications by the World Bank and the Institute for International Economics . According to some individuals , NAFTA has been beneficial to the country of Mexico as evidenced by the reduction in poverty rate and the increase in real income even during the aftermath of the economic crisis from the years 1994-1995 . Others , meanwhile , view that all the elite individuals and owners of business from the three countries as beneficial It was said to have negative significance on the Mexican farmer as the price of food fell due to the cheap United States imports of agribusiness as well as on workers in the industry of factories who lost their jobs . Several critics also state that NAFTA play a significant role on the increasing levels of inequality in the Mexican and United States territory . Some economists think that NAFTA is unable to neither maintain a convergence in the economy (Floudas 2000 ) nor try to reduce the rates of poverty Accordingly , some individuals have voiced their suggestions for the need for Mexico to establish further investments in the field of education and innovation in agriculture and infrastructure

Hufbauer (2005 ) states that NAFTA , generally , has not been the cause of certain diversions in trade except in some industries such as the apparel and textiles wherein shop owners overall , NAFTA has not caused trade diversion , aside from a few select industries such as the apparel and textiles industry wherein the rules of origin negotiated in the agreement were specifically designed to make U .S . firms prefer Mexican manufacturers . The World Bank also showed that the collected NAFTA imports ' percentage growth was accompanied by an almost similar increase of non-NAFTA exports

In for NAFTA to secure the approval of the Congress , one prerequisite is to address the concerns of the public regarding the...

Not the Essay You're looking for? Get a custom essay (only for $12.99)