The time in which NAFTA, trade
of U.S with the North America increasing and growing quickly as compared to the
trade of U.S with the other part of the world. However, for the U.S export, the
Canada and Mexico considered as the larger exporter of the U.S and contribute
as the significant role in the development of the economy. Moreover, if the
implementation of deal in the country will have positive impact on the economy
growth of U.S. Moreover, it increases the dollar that improve the economy of
country. Furthermore, the cost of different industries is also considered in
which benefits of NAFTA are provided in the society at each level.
As the supporters of NAFTA
provide different suggestions in which they described the efficiency as it
provides the opportunities of jobs regarding to trade within the Mexico and
Canada. Th jobs of exporting the goods under this agreement are efficient as it
has more than one thousand employees that perform effectively. But due to the
replacement of this agreement the loss of jobs of large number of employees and
country suffered economically
Although, this trade has
positive impact on the economy of growth but due to the failure of this
agreement, the workers and labors blaming this agreement as it reduce the
number of jobs in the U.S. Moreover, in 1994 more than 250,0 jobs were lost in
the automobile sector which is the largest industry that also disturb the
economy of country. Furthermore, in Mexico loss of jobs ranges from 120,000 to
55,000 and workers faced financial problems in automobile industry. According
to the researchers of econometric, the trade system put the pressure of wages
on the workers having low education as well as the workers with low education
suffered a lot of problems and unable to survive in the competitive environment
of the business world in the Mexico due to lack of knowledge and technical
skills
According to the explanation
of economists that this agreement has no worst impact on the manufacturing
industries of U.S but have little impact on the growth of industries and the
stress that is bear by the manufacturing industries of U.S before the evolution
of this agreement. The writers published their findings in the book in 2016, in
which they described that the competition with the china also disturbed the job
status of U.S and it effect the growth of U.S during the 2001 when China was
attached with the WTO.
However, the economist and
trade expert Hanson in the California University explained about the condition
and status of job in manufacturing industries which is declined quickly as it
declines from seventeen to eleven million during a short period of time which
is also overcome by developing trade business with China and its new
technologies. According to the writer, china is on the top of list in which
employees effected during the year of 2000 and on the second position in
relation to the advancement in the technology. Moreover, NAFTA has no
importance said by the researchers.
According to the point of
view of economist Hanson, NAFTA play its significant role as to provide a
chance to compete the U.S with China in the automobile sector of country. The
supply of goods across the border under the NAFTA that reduce the cost of
goods, enhanced the productivity of country as well as it provides the competitive
edge to the U.S. The writer discussed that the position of jobs changed in
Mexico and people suffered from this change in terms of loss. Moreover, the
regional industry is developed into Mexico in which transfer of goods occurred.
Furthermore, manufacturing industries are also existing in these countries that
play significant role in the economy of country. All these facilities and
connections related to automobile industry of U.S could not access without the
tariffs of NAFTA that provide protection for the property
The senior fellow Edward
Alden at Council describe the pressure on the trade deals that is increasing rapidly
due to the lack of opportunities that are in the favor of labor which improve
the productivity of labors as lack of balance within the income of labors
according to the demand. So, it is necessary to develop pace between the trade
deals for the efficiency of performance as well as the economic growth of
country.
U.S. Jobs Were Lost of
NAFTA Impact on Member
Country
The labor of Mexico is cheap, and the part of manufacturing
industries attached with the U.S with the high cost. However, during the period
of 1994 to 2010 where U.S connected its trade deals with Mexico having the
total amount of $97.2 billion as well as in the same duration jobs were also
shifted towards the Mexico which is 682,900 but in the 2007 out of these
116,400 jobs were displaced. Moreover, during the 2008, financial crisis was
faced due to their inefficient activities that lead towards the huge loss of
manufacturing industries. The most effected countries from this financial
crisis are Texas, California and others as these countries have the large
number of industries which is then moved these industries towards Mexico. The
industries which suffered from loss and then moved to Mexico are the industry
of electrical appliances, textile, computer and automobile industry [3].
U.S. Wages Were Suppressed of
NAFTA Impact on Member
Country
However, all the manufacturing industries not shifted towards
the Mexico and then only industries moved that had threats regarding to the
performance. The workers had choose union among the losing factory and joining
the union because without the union the bargaining power of worker had been
reduced in which the salary packages also effected. During the period of 1993to
1995, most of the U.S more than 40 percent manufacturing industries had been
shifted towards the Mexico due to the threat of sealing the industry. Moreover,
the pattern of shifting industries towards Mexico increased up to 60 percent during
the year of 1999.
NAFTA impact on Mexican of NAFTA Impact on Member Country
The agreement NAFTA enhance
the productivity of the Mexican when implemented in an effective way. As it
provides the large number of jobs within the country as this agreement develop
positive impact on the economy of country. Moreover, the policymaker of Mexican
under this agreement develop balanced and stabilized that enhance the
performance of country. But the country suffered during 2008 due to its
dependency on the U.S market and it was reduced continuously and reached the
loss of 17 percent that exceeded the amount which was invested in the contract.
Although country faced difficult situation, but it stabilizes its economy
during the year of 2010and expanding its GDP during the year of 2014 and 2015 [4]. However, the
experience of Mexico about the NAFTA was not good, and it suffered from the
problems. As its supporters did not fulfill the requirements and the level of
poverty remain same which is not positive impact on the growth of Mexico [5].
Mexico's Farmers Were Put Out of Business
The implementation of NAFTA leads towards the lost of jobs
in farm in Mexico then in 2002 the farm bill was introduced that improve the
economy growth of country. Moreover, after the removal of tariffs over trade the
export of agricultural products below the average cost of product. But the
farmers of Mexico due to lack of knowledge did not compete the farming methods.
Furthermore, Mexico provide the different subsidies to their farmer to improve
the performance of economic growth.
Maquiladora Workers Were
Exploited of NAFTA Impact on Member Country
Moreover, the NAFTA extended its program as removing the
tariffs and it is known as Maquiladora. According to this program the products
were sent back to the U.S having cheap quality and 30 percent of employees from
the Mexican. As the workers faced problems as they lack of required and basic
facilities that employees were deserved. The working hours of labor are
extended and not paid according to their work hours [6]
NAFTA Called for Free U.S. Access for Mexican Trucks
The agreement with the NAFTA was not implemented at the same
time and according to NAFTA, trucks would allow to travel from Mexican to U.S
within the available standard limits. The department of Transportation review
the projects that had been canceled by the house of representatives as it
forbidden the DOT without the permission from congress. Moreover, the congress
protected the Mexican and worried about the hazards of road. But these
protective standards were not implemented in the U.S regarding to trucks and
the driver of trucks against these standards as it was the loss of their
business. So, the transfer of goods from Mexico truck is completed 20 miles and
they transferred their good to U.S trucks. The NAFTA also in the favor of U.S
trucks as they permit the unlimited travelling of trucks
References of NAFTA impact on U.S.
AMADEO, K. (2018, November
15). Six Problems With NAFTA. Retrieved from
https://www.thebalance.com/disadvantages-of-nafta-3306273
Bondarenko, P. (2013,
December 9). NAFTA’s Impact on U.S. Workers. Retrieved from
https://www.epi.org/blog/naftas-impact-workers/
Bown, & P, C. (2018,
October). The 5 surprising things about the new USMCA trade agreement.
Retrieved from
https://www.washingtonpost.com/news/monkey-cage/wp/2018/10/09/the-5-surprising-things-about-the-new-usmca-trade-agreement/?utm_term=.dc98a7c61d53
Bown, C. P. (2017, May 18). What
is NAFTA, and what would happen to U.S. trade without it? Retrieved from
https://www.washingtonpost.com/news/monkey-cage/wp/2017/02/15/what-is-nafta-and-what-would-happen-to-u-s-trade-without-it/?utm_term=.831e0482317d
Cfr.org. (2018, October 1). NAFTA’s
Economic Impact. Retrieved from
https://www.cfr.org/backgrounder/naftas-economic-impact
Floyd, D. (2018, October 10).
NAFTA's Winners and Losers. Retrieved from
https://www.investopedia.com/articles/economics/08/north-american-free-trade-agreement.asp
Livingstonintl.com. (2017,
August 29). Modernizing NAFTA: A Look At Key Issues. Retrieved from
https://www.livingstonintl.com/modernizing-nafta-look-key-issues/