NAFTA And Free Trade In The US

1632 Words 7 Pages
Free Trade
Free trade policies have been in effect since the first stages of the Industrial Revolution; however, the theory of free trade has always been linked with conflict. 1976 Nobel Prize winner, Milton Friedman, once said in an interview that many people forget, "the most important single central fact about a free market is that no exchange takes place unless both parties benefit” (PBS). This fundamental problem brought up by Friedman is prevalent in the minds of millions of Americans. Many workers unions, such as the AFL-CIO, oppose and protest free trade for the U.S. with the notion that it leads to discrimination in the workplace and displaces American jobs, rather than creates them. However, free trade programs such as NAFTA should
…show more content…
is used as one of the major arguments against NAFTA and free trade. Mexico has seen major increases in exports to the U.S., while the U.S. gives less than it receives. The trade balance in 1993 between the U.S. and Mexico was a surplus of $1.7 billion, but is now a deficit $61.4 billion. Though this figure seems staggering, economists suggest that at least 40 percent of the goods imported from Mexico into the U.S. end up being goods originally produced in the U.S. (Sergie). Thea Lee’s position on blaming the loss of one million American jobs within NAFTA’s first two decades on the treaty has also been considered irrational by many economists. They say this displacement of jobs is more in part by a change in the modern U.S. economy, where jobs in manufacturing are becoming scarce as more high-skilled jobs emerge. Along with this, democrats voted on regulating and putting restrictions on labor and environmental conditions for countries involved in NAFTA (Sergie). This data, backed by several economists, shows that many Americans who oppose NAFTA hyperbolize the data they collect and neglect many of the important details that may trump certain aspects of their …show more content…
In 1990, the United State 's GDP, or gross domestic product, was nearly of 6 trillion; this was more than 12 times Canada 's GDP and over 22 times larger than Mexico 's (Kehoe 123). This dramatic difference in the size and power of these three economies does mean that Mexico, starting as the minority, has gained more from NAFTA than did Canada and the United States, as they had more to gain as an economy. That being said, both the U.S.’s and Canada’s GDPs have almost tripled and Mexico’s GDP has increased more than five times. This is not the only value that has increased for all three countries since NAFTA’s first commencement. Exports from the U.S. to its NAFTA partners went up 88% by 2013 and continue to rise. Also within the decade of NAFTA, U.S. exports to Mexico increased 134% to $97.6 billion (trade.gov). Fairly significant growth in most aspects of the economy has continued to increase for all three countries and each of the three accounts for a moderately large percentage of each other’s

Related Documents