Nafta (North American Free Trade Agreement) and Its Advantages in Mexico

852 Words Jan 24th, 2012 4 Pages
NAFTA (North American Free Trade Agreement) and Its Advantages in Mexico
Regional Integration is described as a process in which states enter into a regional agreement in order to enhance regional cooperation through regional institutions and rules. North American Free Trade Agreement was the removal of barriers between Mexico and the United States. It was the phasing out of virtually all restrictions on trade and investment flows. “The expanded trade resulting from NAFTA has raised the United States' gross domestic product very slightly. (The effect on Mexican GDP has also been positive and probably similar in magnitude. Because the Mexican economy is much smaller than the U.S. economy, however, that effect represents a much larger
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Mexico has improved in many different ways. NAFTA has opened up a lot of doors for Mexico to become a better Country to work with other Countries to be more successful in many different areas.

NAFTA (North American Free Trade Agreement) and Its Disadvantages in Mexico NAFTA has had its advantages and disadvantages on Mexico. NAFTA, just like anything else has its advantages and disadvantages. One of the main disadvantages that NAFTA has brought to Mexico was that it caused many of their farmers to be put out of the farming business. This was because of the United States – sub sized farm products. NAFTA was not strong enough to help the Mexican farmers or the Mexican labor to help keep their jobs from being exploited. Mexico has been known for offering their cheap labor. Many companies would send their products to Mexico because they could get the work done at a cheaper price. This is what caused the problem for the farmers in Mexico. NAFTA caused Mexico to lose out on millions of farm jobs. “The 2002 Farm Bill subsidized U.S. agribusiness by as much as 40% of net farm income. When NAFTA removed tariffs, corn and other grains were exported to Mexico below cost.” (Laura Carlsen, February 25, 2003) There was no way that the farmers of Mexico could with those type if prices. The NAFTA did allow Mexico to work with other companies to help

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