Topic > The Pros and Cons of NAFTA - 1323

When you think of North America and its countries it's hard not to think of the North American Free Trade Agreement. Well, it might be easy not to think about it, but let's just say about this essay that everyone thinks about it. This trade agreement was concluded more than 20 years ago and its effects are still talked about today. This agreement is talked about because of the many criticisms it has received since it was enacted in 1994. Where the agreement has actually been beneficial is not the main topic of discussion. In this essay we will examine the main criticisms of NAFTA and try to explain how they came about. The main argument is that NAFTA is better known for its criticism than for what it has done to create better trade among its members. The North American Free Trade Agreement (NAFTA) is a trilateral free trade agreement that entered into force in January 1994. Signed on December 17, 1992 by United States President George H. Bush, Mexican President Carlos Salinas de Gortari and Prime Minister Canadian Brain Mulroney. The main purpose of this agreement was to eliminate most tariffs on products traded between the United States, Mexico, and Canada. NAFTA subsequently created the world's largest free trade area, connecting more than 250 million people in the region and producing $17 trillion worth of goods and services (Sergie). About a quarter of U.S. imports (mostly crude oil, machinery, gold, vehicles, fresh produce, livestock and processed foods) come from Canada and Mexico, which are the second and third largest suppliers of imported goods to the United States. . Furthermore, approximately one-third of US exports; in particular machinery, vehicle parts, mineral fuels, oil and plastic are destined for C...... middle of paper ......nd Jeffrey Schott of the Institute for International Economics estimates that the agreement could add 170 ,00 jobs in the U.S. labor market by 2000, while Clyde Prestowitz of the Economic Strategy Institute estimated a loss of 42,00 jobs over the same time period. Ultimately, NAFTA was and is heavily criticized. NAFTA has been criticized for its effects or lack of impact on the Mexican economy and promises were made when NAFTA was created. Despite these criticisms, NAFTA has done a relatively good job of creating a free and open trade network between the United States, Canada, and Mexico. It also increased industrial integration between the countries involved by sharing information between them. In the near future, NAFTA will need to be reconsidered to resolve these issues and this will allow for a stronger trade agreement between nations.