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... In 1993, three neighbor nations, Canada, Mexico and the United States entered into the North American Free Trade Agreement (“NAFTA”). ... Why doesn’t NAFTA allow the free migration of labor? ... Critics of NAFTA focus on the short term costs of trade while its proponents discuss transitional periods and the long-term gains. ...
Trade Before NAFTA
It seems logical that employers will seek to reduce their costs of production in all manners possible while maintaining a desired production objective. ...
With the protection afforded by trade barriers, prior to NAFTA, the Mexican labor force did not appear attractive to the U. ... After all, it is now, after NAFTA, that we hear what Ross Perot (in 1992) stated would happen, “a great sucking sound” as all the jobs went from the U. ... Free Trade Agreement (CUFTA)
Prior to NAFTA, the U. ... Like NAFTA, CUFTA provided for the phased elimination of trade barriers between the two countries. ... NAFTA has indeed had an impact upon the U. ... However, this must be weighed against the benefits of NAFTA and also the labor market present in the three countries, especially Mexico’s Maquiladora area before NAFTA. ... industries that have benefited most from NAFTA in the short and medium run tend to use most intensely the types of inputs that the U. ... Conversely, the largest decreases in employment, as a result of NAFTA, tends to be concentrated in industries in which job skill requirements are low or in which production requires low concentrations of capital. ... But to argue that NAFTA is the sole cause of this lowering of wages for U. ...
The debate should not focus on how to level the playing fields, or what fair trade barriers are acceptable but rather, how do we meet the challenge of increasing global economic integration, of which NAFTA is only one element. ...
Beyond the question of whether NAFTA will continue to create or destroy jobs in the U. ... is the question of what kind of jobs will remain here after NAFTA is fully implemented in the year 2008? ... NAFTA evidence suggests that what trade theorists predict is true: A more efficient division of labor between countries has developed. ... low-skilled jobs solely on NAFTA is to dismiss all other evidence.
Approximate Word count = 1928
Approximate Pages = 7.7
(250 words per page double spaced)
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