Argumentative Essays

Argumentative Essays

Is NAFTA Beneficial to Mexico and its People?

On January 1, 1994, The North American Free Trade Act (NAFTA) came into force under President Bill Clinton. NAFTA is a trade union between Mexico, Canada, and the United States. NAFTA was initially conceptualized as a means to bring down trade obstacles, smooth the process of trade, and raise successfulness among the countries, which involve one of the prime trading blocks in the world. Facilitation of free trade across North America was the primary goal of NAFTA. Within a decade of execution, there was virtually elimination of tariffs on goods traded in between Mexico, United States and Canada. Elimination of non-tariff trade barriers are also attempted by NAFTA.

Economists, academicians, governmental, and nongovernmental organizations have well-studied and documented the effects of NAFTA. It has been argued that NAFTA has assisted Mexico, the most miserable nation in the pact, which has got improved real incomes and lowered poverty rates. Lots of U.S. corporations have made use of the lacking of tariffs and low costs of labor to institute maquiladoras, or factories, in Mexico, that has contributed to more jobs. On the other hand, it is argued by other experts that in all three countries, the majority of the advantages of NAFTA has fell to the affluent privileged and business owners, whereas underprivileged farmers of Mexico and factory workers of U.S. have felt themselves not as much of able to compete. No social contract is provided by NAFTA. Neither support for Mexico nor health, labor and environmental standards are offered by it. Corporate investors are protected by the agreement; everybody else is on his/ her own. (Faux J., 2003) Opponents also state that Mexico (particularly its farmers) is placed by NAFTA at a disadvantage because many of the commodities it produces are subsidized by the ...