North American Free Trade Agreement

Better Essays
Taylor Wright
International Law

A little Background on the North American Free Trade Agreement On January 1, of 1994 a new approach to trade amongst North American countries took effect. With the aid of the United States Congress, President Bill Clinton was able to form a contract between The North American Countries of Canada, Mexico, and The United States of America. This contract, known as the North American Free Trade Agreement (or NAFTA for short) was designed with many economic results in mind. Hopes were that not only would trade be easier, cheaper, and more abundant for all countries, but economic wealth and growth would follow. Support for NAFTA was split among most citizens of this country. One side seeing the proposal as having the potential for great economic success in each country involved. The other announcing that this plan would prove to be terribly detrimental to United States employment. 14 years after coming into effect the question still remains Is NAFTA in the best interest of the United States? And what can we expect of it in the future? Since the implication of free trade between the three countries of North America back in 1994 the effects of that agreement are just now becoming apparent, both short term and long term. There was little doubt as to how both Canada and most definitely Mexico would benefit from NAFTA. What was yet to be seen was the impact it had on previous concerns of the United States.

Understanding Internationalism Most economists and even ordinary people could understand Canada and Mexico’s enthusiasm when free trade, destroying tariffs, was proposed. After all, the United States has long been the major consumer of exported goods in both countries. No longer having to pay taxes on goods imported into the United States meant larger sales and more profits for all Canadian and Mexican businesses. These profits were foreseen as perpetual economic boosts in their respective country. These boosts



Bibliography: Work Cited Newsweek: NAFTA Nasties, by Blackborough, Richard E. Copyright 1998. “U.S. Agricultural and the North American Free Trade Agreement,”by Schuh, G. Edward. Minnesota, Minneapolis. CC1993-1. “Contesting Globalization: Organized Labor, NAFTA, and the 1997 and 1998 Fast-track Fights, by Shoch, James. Columbia, South Carolina Copyright February 1999. “NAFTA Works by John S. McClenahen Written January 1999. “NAFTA Small-Town Impact? by Parker, Suzi. Christian Science Monitor, 09/09/99, Vol.91 Issue 199, p1

You May Also Find These Documents Helpful

  • Good Essays

    take shape in various forms. Trade agreements such as preferential trade agreements foster trade and other transactions between participating countries by applying less trade restrictions. One of the largest preferential trade agreements in our nation, the United States, is the North American Free Trade Agreement (NAFTA) which is a highly comprehensive and extensive trade agreement between Canada, Mexico and the United States. NAFTA is a preferential trade agreement that continues to be widely debated…

    • 544 Words
    • 3 Pages
    Good Essays
  • Best Essays

    The North American Free Trade Agreement is an agreement which created a trade block between the three largest countries in North America; Canada, United States and Mexico. On January 1, 1994 the agreement entered into force.1 This agreement sets the regulations for international trade and investment between the three NAFTA member countries. NAFTA’s purpose was to promote trade on many goods that originated and are traded between its members, by eradicating trade barriers over a period of 15 years…

    • 2192 Words
    • 9 Pages
    Best Essays
  • Better Essays

    The North American Free Trade Agreement or as its most commonly known NAFTA "is a comprehensive rules-based agreement between the United States, Canada, and Mexico", that came into effect on January 1,1994. All three countries signed it in December of 1992; later on November of 1993 it was ratified by the United States congress. NAFTA was not only used in cutting down on tariffs between both countries but it also help deal with issues such as Transportation, Border Issues, and Environmental Issues…

    • 1124 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    NAFTA, North American Free Trade Agreement, is indeed a trade agreement that was signed by United States, Canada and Mexico. It came into effect in January 1994 after an extremely complex, long and even tedious negotiation process. Points of agreement were difficult to find in some stages of the detate. To be more specific, NAFTA main objective was to facilitate trade decreasing, or in some cases even removing, customs among the three member states. Therefore, trade relations between United States…

    • 177 Words
    • 1 Page
    Satisfactory Essays
  • Best Essays

    North American Free Trade Agreement (NAFTA) I. Brief overview of NAFTA (mainly for in-class presentation) a. NAFTA Introduction b. Original Expectations II. NAFTA over the last 12 years a. Impact on the U.S. economy i. Jobs (Employment Growth) ii. Labor iii. Income iv. Imports vs. Exports (Trade Deficit) 1. Agriculture v. Economic growth b. Impact on Canadian economy c. Impact on Mexican economy d. Global Impact i. International Business ii. FDI (Foreign Direct Investment)…

    • 2362 Words
    • 10 Pages
    Best Essays
  • Good Essays

    stands for, "North American Free Trade Agreement." NAFTA is an agreement that was signed between Mexico, U.S., and Canada. NAFTA was put into place on January 1, 1994. The reasoning behind NAFTA was to create an agreement was that helped to eliminate "tariff" and also non-tariff barriers to free trade among, Mexico, U.S., and Canada. The concept of trade liberalization helps us to understand how NAFTA works because trade liberalization is, "the removal of restrictions or barriers on the free exchange…

    • 484 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    But there are also reasons membership may be rejected. These reasons are explored in the sections below. Reasons for participation 1) Economic rewards: In the case of the North American Free Trade Agreement (NAFTA), many different countries receive economic benefits from membership in the free trade agreement. For example, Mexican companies are given better access to U.S. markets due to their membership. 2) Political influence: Smaller countries, such as Portugal and the Netherlands,…

    • 4256 Words
    • 18 Pages
    Powerful Essays
  • Satisfactory Essays

    NAFTA? ANSWER 1: Between 1994 and 2004, despite strong and growing demand by American consumers, U.S. apparel production fell by 40 percent and textile production fell by 20 percent. The cuts in production led to significant job losses, with employment in textile mills falling from 478,000 to 239,000, and apparel employment dropping from 858,000 to just 296,000. Most students will recognize that the NAFTA agreement meant that U.S. producers could take advantage of Mexico’s low cost labor and inputs…

    • 392 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    NAFTA AND THE US TEXTILE INDUSTRY 1. Why did many textile jobs apparently migrate out of the United States in the years after the establishment of NAFTA? Jobs migrated out of the United States because where the average labor for US was $10 to $12 an hour compared to rates in Mexico at $10 to $12 a day. For example, the company Fruit of the Loom Inc. would benefit more and increase their revenue by paying their employee’s less to perform the job. It is also stated that NAFTA was credited…

    • 462 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Free Trade agreement

    • 1000 Words
    • 4 Pages

    Free trade agreement What is The Free Trade Agreement? The Free Trade Agreement or FTA is more than just exchanging goods between Canada and America. The FTA, best understood in the words of Ronald Reagan is “ A new economic constitution for North America.” (Cameron Pg. 3). It is an exchange of goods between Canada and America, free of taxes on import and export products, so each of the countries benefits from the other’s industry. The signing of the Free Trade Agreement replaced the General Agreement…

    • 1000 Words
    • 4 Pages
    Good Essays