The NAFTA

The NAFTA:
An Overview of an Underperforming Agreement

Legal Environment of Business
November 14, 2009

Since it was first discussed over 20 years ago, the North American Free Trade Agreement (NAFTA) has been a source of heated debate amongst all classes of people, and across three separate nations. It critics have accused of it of killing jobs, while its proponents say it creates them; its been blamed for widening the gap between social classes, while others hail it for helping out the poor. It has been a primary issue in numerous elections over the years, and it appears that it will continue to be for many to come. Regardless of what one might think of the NAFTA, its impact is undeniable. The future of the NAFTA is a topic of much…show more content…
The most widely cited reason given for disapproving of the NAFTA is the loss of United States jobs. Though it would be impossible to get an exact number on jobs lost or created by the NAFTA, we do know that the manufacturing industry has suffered, shedding millions of jobs, and that many manufacturers have since set up plants in Mexico (Amadeo, Disadvantages). The belief is that they moved the plants from the United States to Mexico to take advantage of the cheaper labor there, while enjoying the benefits of duty-free shipping. Maquiladoras, factories along the United States-Mexico border that are owned by the United States and employ cheap Mexican labor, have increased dramatically since the NAFTA was implemented and now make up 30% of the Mexican labor force (Amadeo, Disadvantages). It was believed that the NAFTA would help to eliminate these factories, not make them more attractive. Maquiladora workers are generally treated very poorly, and are used as a tool for getting exports quickly and cheaply to the United States markets (Amadeo, Disadvantages). The fear of American workers that their jobs could be sent to Mexico has been used as a bargaining chip by American corporations as well, reportedly 65% of United States companies had threatened this very thing during union meetings to suppress wage growth…show more content…
“Advantages of NAFTA.” About.com: U.S. Economy. The New York Times Company. Web. 13 Nov. 2009.
Amadeo, Kimberly. “Disadvantages of NAFTA.” About.com: U.S. Economy. The New York Times Company. Web. 13 Nov. 2009.
Faux, Jeff, Carlos Salas, and Robert E. Scott. “Revisiting NAFTA: Still not working for North America’s Workers.” epi.org. Economic Policy Institute. 28 Sept. 2006. Web. 13 Nov. 2009
Murphy, John. “NAFTA at 15: Assessing its Benefits.” chamberpost.com. U.S. Chamber of Commerce. 18 Feb. 2009. Web. 13 Nov. 2009
“56% Want NAFTA Renegotiated, Americans Divided on Free Trade.” rasmussenreports.com. Rasmussen Reports. 20 June 2008. Web. 13 Nov. 2009.
Blake, Shawna. “U.S. Elections 2008: Comparing Obama and Clinton on NAFTA.” helium.com. Helium, Inc. Web. 13 Nov. 2009.
Goldstein, Bonnie. “Canada’s Obama NAFTA Memo.” slate.com. Washington Post.Newsweek Interactive. 04 Mar. 2008. Web. 13 Nov. 2009.
“Clinton Would Fix Husbands NAFTA Mistakes.” msnbc.com. MSNBC. 14 April 2008. Web. 13 Nov. 2009.
“North American Free Trade Agreement.” Wikipedia.org. Wikimedia Foundation, INC. Web. 13 Nov. 2009.
“North American Free Trade Agreement (NAFTA).” fas.usda.gov. U.S. Dept. of Agriculture. Web. 13 Nov.