A Re-Evaluation of NAFTA
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This paper examines the pros and cons of the 1994 NAFTA agreement involving the United States, Canada and Mexico. The paper concludes that the benefits of the free trade agreement far outweigh the costs in terms of economic growth, job creation and the ability to compete better against other large trading blocs such as the EU and the Pacific region. The paper contends that NAFTA leads to an increase in overall wealth; how that wealth is spread remains a social policy issue.
From the Paper:"The North American Free Trade Agreement (NAFTA) was approved in late 1993 by the U.S. Congress, U.S. Senate, the Mexican Senate, and the Canadian Parliament. On January 1, 1994, NAFTA officially became the largest "free trade" zone in the world, encompassing populations of more than 400 million, production of about $11 trillion annually, and three-way trade in the area of $660 billion in 2000 (Fry & Bybee, 2002).
"The rationale behind the agreement was to create a large enough common market (similar to the one in Europe) so that the three countries could act as one bloc. As well, it was understood that the era of globalization meant that countries and people were becoming more and more interconnected. According to Fry & Bybee (2002): "World trade in goods and services now adds up to seven trillion dollars, annually. The volume of world trade is up 16-fold since 1947" (p1). This interconnection also meant that individual economies were simply not strong enough on their own to compete as well as they could. For example, Chart 1 below shows the large differences between the American, Canadian and Mexican populations and economies."
Cite this Analytical Essay:
A Re-Evaluation of NAFTA (2003, October 07) Retrieved May 10, 2021, from https://www.academon.com/analytical-essay/a-re-evaluation-of-nafta-39339/
"A Re-Evaluation of NAFTA" 07 October 2003. Web. 10 May. 2021. <https://www.academon.com/analytical-essay/a-re-evaluation-of-nafta-39339/>