The North American Free Trade Agreement Essay

1196 Words Mar 30th, 2016 null Page
The North American Free Trade Agreement (NAFTA), is a group of shared businesses with a common purpose of trade in the North America. It is a trading partnership between the United States, Canada and Mexico. It is the world largest free trade zone and richest market. The United States President Ronald Reagan first proposed a free trade agreement between the U.S. and Mexico in his 1980 presidential campaign. From the time when NAFTA was signed in 1993, it increased in the U.S. trade deficit with the Canada and Mexico through 2002. According to the agreement the NAFTA came into effect in January 1, 1994 (“The North”). In 1996, U.S. two-way trade in goods under the NAFTA with Canada and Mexico stood at $420 billion--a 44 % increase since the NAFTA was signed. Being that, it caused the displacement of production that supported 879,280 jobs in the United States (Scott I). A number of lost jobs were high wage positions in manufacturing businesses. The job loss clearly shows NAFTA’s impact on the U.S. economy. NAFTA cause income inequality today by a rise in trade deficits, lower wage growth and job losses, also a result of the wave of illegal immigrants into the United States.
To start with, a rise in trade deficits creates income inequality today. Trade deficit is an economic measure of a damaging balance of trade in which a country 's exports is less than its imports. Trade deficit is growing in the United States which is harmful for the economy. It means that a huge amount of…

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