NAFTA

14 Pages 3581 Words

n January 1,1994, and in the current year of 1999, NAFTA has been in effect for over five years. Proponents of NAFTA are still stressing the positive effects of its implementation, while its opponents are still trying to convince the people of the United States that NAFTA is hurting them.
One of the major arguments that the supporters of NAFTA use is the fact that the unemployment rates and inflation rates are lower than they have been for years. The economy appears to be in good standings, as personal savings rates are negative for the first time since 1933 and household debt levels are the highest ever recorded.
Despite these strong arguments, the opponents are still convinced NAFTA has hurt the U.S. people. The U.S. has become the world¡¦s largest debtor over the last few years, with a total foreign debt of nearly two trillion dollars. Thousands of United States jobs have moved to other countries, leaving people of the U.S. without jobs. Could factors like these possibly be helping our country?
The North American Free Trade Agreement is a trade agreement between the countries of Mexico, Canada, and the United States. In 1994, Mexico had a current population of ninety-four million, Canada had twenty-nine million, and the United States was home to two hundred and sixty million people. (McMillion, 1999: 2) NAFTA creates a free trade area between these people. The terms of the agreement were decided on in order to:
ƒnƒnƒnƒÜ Promote free competition
ƒnƒnƒnƒÜ Eliminate barriers in order to exchange goods and services
ƒnƒnƒnƒÜ Increase investment opportunities
ƒnƒnƒnƒÜƒnProtect patents and copyrights
ƒnƒnƒnƒÜ Establish a way to fairly settle disputes between countries
As a free trade agreement, NAFTA¡¦s aim was to allow North American countries to compete with each other freely. In theory, free trade would mean that production in each country would result in the manufacturin...