A History of NAFTA
The North American Free Trade Agreement, or NAFTA, was put into action by president Bill Clinton on December 8, 1993. The seeds for the signing of NAFTA were sown by Ronald Reagan, who first began to push for legislation that would create a free North American market. The Canada-U.S. Free Trade Agreement was a predecessor that established a trade agreement between the two nations. George H.W. Bush signed the NAFTA bill in 1992, which signified that it was originally a creation of a Republican government. Clinton made it an official law during his tenure as president.
President Clinton signing NAFTA into law
What Does NAFTA Do?
In official terms, NAFTA would "Eliminate barriers to trade and facilitate the cross-border movement of goods and services." Essentially, all tariffs would be removed between the three countries of the United States, Mexico, and Canada. Its goals were to promote economic growth and opportunity as well as set a foundation for a potential global free market.
What Does NAFTA Mean Today?
NAFTA has been heavily criticized by some. The main argument against it is the growth of unemployment in American, where it is believed that many domestic jobs have been lost to foreign nations. During recent elections, candidates have taken strong stances on NAFTA. Donald Trump has been vocal in his desire to get rid of NAFTA, stating that he wants American companies to stay in America. The issue of free trade, with the recent implementation of the Trans-Pacific Partnership, has become a meaningful one in our society.
Sources:
http://content.time.com/time/nation/article/0,8599,1868997,00.html
http://time.com/4051371/donald-trump-nafta/
I think another important issue surrounding free trade is the way it affects people in other countries, not just in America. In Mexico specifically, NAFTA was disastrous for subsistence farmers and wage laborers alike. The removal of tariffs on corn, for example, flooded the Mexican market with cheaper American corn, driving many farmers out of business and into poverty. As many as 2.5 million Mexican workers became unemployed as a result. Furthermore, studies have shown that the wage gap between skilled and unskilled workers actually widened with the introduction of free trade policies like NAFTA.
ReplyDeleteMore generally, free trade is almost always lopsided. Either producers in one country gain a significant competitive advantage, or workers in the less regulated country are exploited, or both.
Sources:
unemployment of Mexican farmers: https://www.citizen.org/documents/NAFTAs-Mexico-Legacy.pdf
wage gap: https://www.gtap.agecon.purdue.edu/resources/download/1829.pdf
Very true. I chose to limit my post to the effects on America for the sake of specificity, but there is no doubt that NAFTA has had an impact on many different groups of people.
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