Nafta Essay

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The North American Free Trade Agreement, otherwise known by its acronym NAFTA, was designed to eliminate barriers to free trade between Canada, The United States of America, and Mexico. The agreement’s main focus was originally centered on eliminating tariffs on the agriculture industry, along with reducing tariffs on textiles and automobiles. Since its inception over twenty years ago, NAFTA has had many pros and cons, ups and downs, supporters and naysayers. On the supporting side it was said, "NAFTA was designed to promote economic growth by spurring competition in domestic markets and promoting investment from both domestic and foreign sources. It has worked," Gary Clyde Hufbauer and Jeffrey J. Schott, experts at the Peterson Institute for International Economics and the authors of NAFTA Revisited: Achievements and Challenges. But opposer Noam Chomsky says of the agreement, “… NAFTA, and the like are called “free trade” agreements. That is a misdescription. Firstly, the term “trade” hardly applies to a system in which some 40 percent of U.S. “trade” is intrafirm, centrally managed by the same highly visible hands that control planning, production, and investment. Over half of U.S. “exports” to Mexico, for example, do not enter the Mexican market, consisting of transfers from one to another branch of a U.S. corporation, to maximize gains from lower labor costs and environmental standards.” So over the past twenty years there has been very opposite ends of the spectrum weighing in on NAFTA’s good, bad, and ugly. My objective is to take a look at NAFTA’s history from both sides of spectrum, explore the pros and cons, and take a look at what the future holds in store for NAFTA, Canada, The United States, Mexico, and the World. NAFTA was signed in 1992 by Mexican President Salinas, President George H.W. Bush, and Canadian Prime Minister Brian Mulroney. It was

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