This week’s article focused on NAFTA and the debate over its impact. Authors McBride and Aly analyze the argument for and against NAFTA and its impact on the economy’s involved: The United States, Mexico and Canada. NAFTA is an agreement between these 3 countries and it implementation meant the removal of most tariffs on traded products between the three countries. Furthermore, the agreement set rules for intellectual property and other trade elements between the 3 countries.
The authors give multiple facts that focus on the possible pros and cons of NAFTA. Some of the Pros noted by these authors for NAFTA include increased trade. The authors explain that after the implementation of NAFTA regional trade increased, in just two decades, from about $290 billion in 1993 to over $1.1. trillion in 2016. After the implementation of NAFTA cross-border trade also increased. The United States foreign direct investment stock in Mexico increased from $15 billion to over $100 billion. Moreover, NAFTA is credited for boosting the Mexican farm exports to the U.S. as well as, aiding in the creation of a large amount of jobs in the auto manufacturing sector. Another fact in support of NAFTA noted by the authors is that since the agreement there has been a strong rise in Canada’s agricultural sector. NAFTA helped to increase bilateral U.S. and Canada …show more content…
to Mexico, thus taking away jobs from Americans. Moreover, the authors note that some workers and industries suffer negative impacts of NAFTA as they are victimized by increased competition which leads to losses in market shares for them. The authors also write that another argument against NAFTA is that it has led to wage stagnation in the U.S. and a growing trade deficit, because when companies in the U.S. calculate the low cost of production in Mexico they tend to make the move
The authors give multiple facts that focus on the possible pros and cons of NAFTA. Some of the Pros noted by these authors for NAFTA include increased trade. The authors explain that after the implementation of NAFTA regional trade increased, in just two decades, from about $290 billion in 1993 to over $1.1. trillion in 2016. After the implementation of NAFTA cross-border trade also increased. The United States foreign direct investment stock in Mexico increased from $15 billion to over $100 billion. Moreover, NAFTA is credited for boosting the Mexican farm exports to the U.S. as well as, aiding in the creation of a large amount of jobs in the auto manufacturing sector. Another fact in support of NAFTA noted by the authors is that since the agreement there has been a strong rise in Canada’s agricultural sector. NAFTA helped to increase bilateral U.S. and Canada …show more content…
to Mexico, thus taking away jobs from Americans. Moreover, the authors note that some workers and industries suffer negative impacts of NAFTA as they are victimized by increased competition which leads to losses in market shares for them. The authors also write that another argument against NAFTA is that it has led to wage stagnation in the U.S. and a growing trade deficit, because when companies in the U.S. calculate the low cost of production in Mexico they tend to make the move