NAFTA Controversy Summary

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Explanation of Key Term The North American Free Trade Agreement (NAFTA) is an agreement that was signed in 1994 between three nations, United States, Canada and Mexico. This agreement would eliminate tariffs, expand trade and investments, and remove restrictions on agricultural products, auto parts and energy goods between these participating signatory nations (Satterlee, 2018).
Summary of Key Article The Article NAFTA the Controversy highlights the four prominent criticisms that the U.S. citizens have with NAFTA. The author’s research debunked the criticisms except for one. The criticisms from the American public were: loss of American job, loss of Foreign Direct Investment (FDI), stagnate income gain for workers. and increase …show more content…
Therefore, because of new job creation in the U.S., FDI has increased. There is still much research needed to prove if American wages has increase or decrease, due to NAFTA, as changes in the tax codes makes it difficult to attribute a disparity in wage inequality, based on the American workers assertions. However, the research does show that income inequality is more prevalent in Mexico as 10% of the population has seen an increase in wages, while 90% has seen a decrease or stagnant wages since NAFTA’s inception. Lastly, the criticism of illegal immigration has been proven to be true as the author argues that the Mexico agrarian market has diminished because of NAFTA and has forced farmers to seek better opportunities in the …show more content…
Therefore, the authors argue that Mexico has increased their exports to the U.S. in the agrarian sector as the statistics reflects that before NAFTA in 1993 exports to the U.S. accounted for $3.6 billion, 2005 exports were $8.3 billion, and by 2007 exports tripled to $11 billion, rising 10% each year after the NAFTA agreement was in full operation. Prior to the NAFTA agreement in 1993, trade between Mexico and the U.S. climbed from Mexico importing $39 billion, and the U.S. exporting $41.5 as compared to 2007 data relecting U.S. imports from Mexico reached total of $229 billion and exports from the U.S. to Mexico was 160 billion USD (Hymson, Blakenship, & Daboub, 2009). Even though, exports of agrarian goods have increase into the U.S. marketplace, Mexico has lost 1.5 million rural agrarian jobs that has forced illegal migration of unskilled labor into U.S. marketplace (Perez-Batres,
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