Pros And Cons Of Nafta

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NAFTA was proposed in 1992 by George W. Bush, Brian Mulroney and Carlos Salinas. NAFTA stands for North American Free Trade Agreement which consists of America, Canada and Mexico. The agreement was created in order to build economic growth for the three countries also eliminating barriers and trades between the countries. The agreement was to build the largest trade zone between the three and give American's 200,000 jobs by 1995. It received a lot of controversy due to the agreement involving two developed countries and one currently developing country. The North American Free Trade Agreement was put into place on January 1st 1994, which brought immediate elimination to most tariff and non-tariff obstacles between the countries of Mexico, America, and Canada. The concept of trade liberalization helps us understand the workings of NAFTA by explaining that North America relies on temporary foreign labor. The trade liberalization also helped eliminate tax barriers and non-tariff barriers. It sets a disadvantage of the developing country of Mexico compared to its partners, since they are not caught up financially with the other countries. Mexico has less flexibility in terms of what America and Canada are producing. The positive impacts of NAFTA would be that it has created jobs for thousands of people, helping the economy to grow.
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