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These are signs that the North American Free Trade Agreement is still in hot water as it has always been.
It also stemmed from a vision to strengthen the competitive of North America in the global market, encourage business investments, reduce costs of trading and facilitate movement of goods across borders, among others. While proponents say that NAFTA offers numerous benefits, opponents argue that it was at the expense of the middle class working Americans who have been displaced since its implementation.
Supporters of NAFTA posit that this open-trade agreement among the three member countries brought about the founding of the North American Agreement on Labor Cooperation NAALCa parallel agreement on labor cooperation that aims to improve working conditions and living standards of workers.
Moreover, it helped address labor issues such as secret balloting, migrant worker protection and discrimination. Trade and Commerce Growth.
Advocates for NAFTA claim that the trade agreement offers three specific benefits with regard to trade. First is the removal of all tariffs among the three countries that was instrumental to the reduction of inflation and importation costs.
Second is the fair chance given to each country to take part in bidding for government projects through open-market trading. According to proponents, this has opened doors for more bidders to offer lower bids. Third is the motivation it gives to investors to join the trading industry as well as expansion of small and medium enterprises.
Economic Boost of States. Supporters say that NAFTA implementation strengthened the metal and clothing industries of this state. Strengthened Economies of Member Countries.
The agriculture industry in the U. Mexico imported agricultural products and livestock from the U. S such as soybeans and beef as brought about by the reduced Mexican tariffs.
Negative Effect on Mexican Farmers and Industries. This had a ripple effect since the drop in sales of domestically grown produce, the Mexican government cut down its subsidy to the farmers.
In the case of the trucking industry, American truckers argue that the reciprocity with Mexico on allowing Mexican trucks and trucks for the U. What was supposed to be a boon to the economies of Mexico and Canada became a burden to the American working class since manufacturers transferred to these countries which resulted to loss of jobs.
Additionally, those who did not leave had to lower the wages they gave to workers who were not even represented by labor unions and had to accept low pay in order to feed their families. Worse, local manufacturers chose to outsource their job requirements to Mexicans instead of the locals.
NAFTA expanded the maquilodora program which allowed American manufacturing companies to employ Mexicans living near the borders for their assembly lines and plants. Maquilodoras were also paid very low wages and did not have representation because many Mexicans did not know about labor unions.
Advocates for labor rights also claim that NAFTA has allowed the exploitation of Mexican laborers who are forced to labor in poor working conditions and live in dilapidated shelters without electricity. Despite the talks of lower carbon emissions, opponents of NAFTA contend that the environment is still destroyed by the harmful chemicals from pesticides and fertilizers used by Mexican farmers to increase production of crops to compete with imported agricultural products.
Also, the growing desire of farmers to expand agricultural land, they turned to burning and destroying more forests to convert them to farm land. These practices will still be sending carbon emissions in the air and cause air pollution.
The recent signing of a green deal is just the start and it will take years to see the results but the ongoing wrong practices in farming are already affecting the environment. With the contentions from both supporters and critics of NAFTA, this issue will remain to be a controversial topic.
This has even been a continuing political debate in the country involving presidential candidates. What is important is to ensure the pros of this trade agreement outweigh its cons.Can your business benefit from the new trade deal?
There are pros and cons to every free trade agreement. Canadian businesses selling internationally often grow faster in markets when there’s a free trade deal in place.
Students seeking professional training can choose from any number of vocational and trade schools. From community colleges to career schools to trade schools, popular programs include nursing engine mechanics and culinary arts. Can your business benefit from the new trade deal?
There are pros and cons to every free trade agreement. Canadian businesses selling internationally often grow faster in markets when there’s a free trade deal in place. Though I have set up a self-directed RESP for my boys, I had not researched scholarship plans in detail.
The little I did read about them suggested that I should stay away.
One example of free trade is the agreement between the Unites States, Mexico, and Canada, known as the North American Free Trade Agreement (NAFTA). NAFTA was established January 1, , between. Dear Twitpic Community - thank you for all the wonderful photos you have taken over the years.
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