The Failure of the North American Free Trade Agreement Essay

The Failure of the North American Free Trade Agreement In December of 1992, Presidents Salinas (Mexico), Bush (U.S.) and Prime Minister Brian Mulroney of Canada signed the North American Free Trade Agreement (NAFTA). The Mexican legislature ratified NAFTA in 1993 and the treaty went into effect on January 1, 1994, creating the largest free-trade zone in the world. NAFTAs promoters promised 200,000 new jobs per year for the U.S., higher wages in Mexico and a growing U.S. trade surplus with Mexico, environmental clean-up and improved health along the border. The reality of the post-NAFTA surge in imports from Mexico has resulted in an $14.7 billion trade deficit with Mexico for 1998. By adding the Mexican trade deficit†¦show more content†¦Of the 67 companies studied, 60 had not created jobs or even increased their exports to Mexico. When we look at the goods exported from the U.S. to Mexico, we must understand that the figures used do not mean goods to be sold in Mexico. Most of the figures released by the government include what is termed as ?industrial tourism?. This means we send goods to Mexico to be assembled in their low wage plants and then re-imported into the U.S. as finished products. (2) A significant portion of the jobs lost to Mexico due to NAFTA are in the higher wage sectors of manufacturing. Many of these are in the automobile and electronics industries. The latest government data shows that 70% of the jobs lost were in manufacturing. The U.S. has gone from a pre-NAFTA manufacturing trade surplus of $4.6 billion with Mexico in 1993 to a $8.9 billion deficit in 1998. Imports from Mexico have increased 129% since NAFTA went in to effect. (3) According to the U.S. Department of Labor, approximately 214,902 American workers have been certified as having been laid off due to NAFTA. These numbers do not take into account the workers displaced out side of the factories. When a plant closes and moves to Mexico it is not only the line worked who is affected but also the entire community. One must look at the retailers who have to layoff works due to decreased sales; restaurants and all service industries tied to the consumer are affected. These workers are notShow MoreRelatedThe Free Trade Agreement854 Words   |  3 PagesThe Free Trade Agreement (FTA) as well as the North American Free Trade Agreement (NAFTA) were failures. The North American Free Trade Agreement was one of the most controversial documents of the 20th century, beginning January 1st 1988.1 The reason it was so controversial was because it was loved in some ways yet hated in others. 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