Nafta Negative Effects

Superior Essays
An initial expectation of NAFTA was the creation of 200,000 American jobs, with millions to follow. The logic behind this claim was the expectation that exports from the United States would be greater than imports from Canada and Mexico. However, United States imports from Mexico started to outnumber exports, and a trade deficit began to grow. Also, the U.S. Chamber of Commerce stated that millions of jobs have been created from NAFTA. However, according to the Economic Policy Institute, those calculations were based on jobs gained by exports, and do not take into account jobs lost due to growing imports. The economy has grown, but not because of NAFTA.
Experts attribute job loss to the increase in trade deficits. Deficit have risen from two
…show more content…
Companies choose to use these these nonrenewable natural resources, and as a result create harmful living conditions. The greenhouse gas emissions from the southern US and Mexico have increased from seven billion metric tons in 1990 to over eight billion in 2005. Due to NAFTA, there has been an increase in imports and exports between the three countries. However, the primary sources of transportation for NAFTA is by trucks and railroads, which both use significant amounts of petroleum. Petroleum is a significant source of greenhouse gas emissions. In addition, deforestation and unsustainable water source have increased dramatically in Mexico. This is because Mexico wants to maintain their high production of exports. Mexico is also using more fertilizers to increase their production of agriculture. The damage caused by the fertilizers is estimated to cost thirty six billion dollars to clean up. In addition, their infrastructure is weak, making living conditions for the Mexican lower class population poor. Mexican trucks are also allowed into the United States to deliver their exports as part of NAFTA. Lots of rights have been given to big corporations to challenge the environmental and climate regulations. Instead of exporting clean fuel, exports of fossil fuels increased. NAFTA has allowed businesses to cause greater environmental damage to the air, water, and land, as well as for the workers and communities. However, the bylaws of the NAFTA agreement exempt Mexico from having to follow United States Department of Transportation standards. The United States Department of Transportation has implemented lower carbon dioxide emissions as new United States truck standard. The Department expects a decrease of one point one billion metric tons of carbon

Related Documents

  • Decent Essays

    The North American Free Trade Agreement gave Canada an image of a successful country. With this agreement, Canada was able to form successful bonds with Mexico and America, especially the U.S. In order to make this three-way agreement, all 3 countries had to be respectful and had to be co-operative to have a successful trade relationship. Although America and Canada have a very strong trade relationship, that's not where it ends, it goes beyond just trade and business. They share the same border and are neighbours which also affects their relationship because they have more time to bond.…

    • 257 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    The difference between NAFTA and the EU is that NAFTA is purely an agreement however; the EU is a political entry. These systems both encourage businesses and nations to work together to increase trade within the world. Both of these unions are what makes a part of the world trade bloc and play a very big part of the trade negotiations that take place in the world. Without these unions trade would be very difficult as countries would not know what barriers and tariffs that will need to be set as well as that businesses will be paying lots of taxes when importing and exporting goods meaning that profits will not be as high as they can be. (Stiglitz and Contributor, 2010).…

    • 1011 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    However, the NAFTA failed to generate job growth for Mexico, the only developing…

    • 169 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Following the second world war American influence started arising through means of television, automobiles, and art. Because Canada was late to the game of broadcasting, automobiles and country development, Canadians were heavily impacted by the American ways. During the 1950s to the 1980s Canada started to emerge and protect and grow their Canadian culture and identity. The CBC was a heavy impactor on Canadian culture and identity since most Canadians spent many hours a day watching television. NAFTA brought new and economic resources in Canada for a better economy and more trading partners.…

    • 629 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    However, they handle relations only between Canada, the United States and Mexico. It was put into action on January 1, 1994. Similarly to the WTO, they arrange the policies of trade and investment between these three countries. In fact, since this agreement has been established, NAFTA has removed most tariff and non-tariff barriers to free trade and investment among Canada, USA and Mexico. Also, since NAFTA went live, exchange and venture levels in North America have expanded, causing solid financial development, work creation, and better costs and choice in consumer products.…

    • 736 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Costs are lowered for farm products, too. NAFTA also help to increased higher wages in several careers in Canada, such as engineering, education and, etc. Moreover, it creates more trade opportunities in Canada and leads to an increase in productivity gradually. However, with the introducing of NAFTA, led to a dramatic amount of jobs lost in manufacturing industries in Canada which include automotive, textile, computer and electrical appliance; for Mexico labor was cheaper.…

    • 610 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Each of these required vehicles emitting their own source of greenhouse gas emissions and the total greenhouse gas footprint continues to…

    • 1627 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Multiculturalism In Canada

    • 1037 Words
    • 4 Pages

    In the past 70 years since the end of World War II, Canada has evolved from the soldiers following the orders of Great Britain to the modern bankers of the world. The change in Canada’s global image reflects the metamorphosis that has transformed this country. Canadian domestic legislation has developed the foundation of Canada’s national identity, one that values multiculturalism, human rights, diversity, and the welfare of its citizens. Canada’s trade and economic policy has helped establish Canada’s independency and has given the country a reputation for having good financial practices, establishing Canada as a prosperous country. Canada’s involvement in wars post-World War II, the creation of the Canadian Forces, and Canada’s role as peacekeepers…

    • 1037 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Arguments Against Nafta

    • 467 Words
    • 2 Pages

    Against NAFTA NAFTA is the North American Trade Agreement established in January, of 1994 between the three countries part of North America; United States, Canada, and Mexico. In the beginning, NAFTA's main goal was to strengthen the economic relations between Canada, the U.S., and Mexico. To get the public's approval, they used free trade concepts in the agreement, promising to improve labor conditions, and have better benefits for all workers. In contrary to this plan, NAFTA ended up benefitting mainly investors and large corporations instead. As a result, NAFTA has been a failure, increasing unemployment as well as decreasing wages for thousands of workers.…

    • 467 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    In fact, the cost of so-called free trade is unreasonably high and destructive by forcing middle class men and women to compete with global workers who make less than they do per hour per day. The United States has also become the world’s biggest debtor and has lost things like production, jobs, and capital. Under Bush and Clinton’s administrations there has been many one sided free trade agreements. With the creation of NAFTA (North American Free Trade Agreement) came failure. Instead of raising the manufacturing wages in Mexico it fell by 25 percent.…

    • 931 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Economic Stimulus Act

    • 1526 Words
    • 7 Pages

    Introduction and Economic Situation The Economic Stimulus Act was signed in February of 2008. The goal of the Economic Stimulus Act was to hopefully increase the economy throughout the United States and to attempt avoiding a recession. According to our textbook, a -recession is best defined as “a period of decline in economic activity lasting more than a few months, as reflected by falling output, employment, income, and other aggregate measures “(McEachern,2015).…

    • 1526 Words
    • 7 Pages
    Superior Essays
  • Superior Essays

    Impacts Of Tariffs

    • 1752 Words
    • 8 Pages

    Impacts of Tariffs James B. Smith Principles of Macroeconomics Professor Hovey 17 October 2015 Impacts of Tariffs A common term that you will hear in the news regarding economics is the word tariff; tariffs have all but diminished here in the United States because we have become pro free trade country. Agreements like the North American Free Trade Agreement have been formed to allow free trade among multiple countries. Tariffs can greatly benefit the economy, but can also hurt the economy depending on what the tariff pertains to.…

    • 1752 Words
    • 8 Pages
    Superior Essays
  • Improved Essays

    The economic policy institute (EPI) estimates that 600,000 jobs have been lost because of NAFTA in the US alone. It is stated on the organization for Dollars and Sense website that “...during the 1990s, the overall U.S. trade deficit quadrupled, resulting in a net loss of 3 million jobs, according to EPI president Jeff Faux.” However, most of the hurt NAFTA brings is felt south of the border where according to an article on The New York Times website it states that Mexico's “annual per capita growth flatlined to an average of just 1.2 percent -- one of the lowest in the hemisphere. Its real wage has declined and unemployment is up. “ Becuase cheap U.S. imports are being poured into Mexico producer prices have dropped and have forced about two million farmers to leave their land since NAFTA because they cannot compete with the low wage it costs for the U.S. to subsidize the imports.…

    • 955 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    President Obama’s Last State of the Union In President Barack Obama’s last State of the Union speech is one of the most influential and admired speeches of the 20th century. Obama focuses primarily on not just the coming year, but about the coming decades. Obama has mass appeal as a public speaker that uses three public-speaking techniques to captivate his audiences. He uses a number of rhetorical devices in his speech, but three techniques in particular, seem consistent across his speech; he uses transcendence by using concrete and tangible language, repetition to clearly emphasize one idea and make it memorable, and he uses his voice effectively.…

    • 429 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Another information he shared in the article, where he gave an example of NAFTA where he talked about the effect of trade between US and Canada. Merchandise trade levels between Canadian provinces were built-in “home bias”. Although NAFTA helped reduce this ratio of domestic to international trade from 10:1 to 5:1. This shows the nationalism is yet overcome to reach the…

    • 839 Words
    • 4 Pages
    Improved Essays