Why Did The United States Join The North American Free Trade Agreement

Mexican politicians saw NAFTA as an opportunity to accelerate and block these hard-hit reforms in the Mexican economy. In addition to trade liberalization, Mexican leaders have reduced public debt, introduced a balanced budget rule, stabilized inflation and built up the country`s foreign exchange reserves. Although Mexico was hit hard by the 2008 financial crisis because of its dependence on exports to the U.S. market – the following year, Mexican exports to the United States fell by 17% and its economy fell by more than 6% – its economy rebounded fairly quickly and returned to growth in 2010. NAFTA was supplemented by two other regulations: the North American Environmental Cooperation Agreement (NAAEC) and the North American Agreement on Labour Cooperation (NAALC). These tangential agreements should prevent companies from moving to other countries in order to use lower wages, more moderate health and safety rules and more flexible environmental rules. Many critics of NAFTA saw the agreement as a radical experiment developed by influential multinationals who wanted to increase their profits at the expense of ordinary citizens of the countries concerned. Opposition groups argued that the horizontal rules imposed by nafta could undermine local governments by preventing them from enacting laws or regulations to protect the public interest. Critics also argued that the treaty would lead to a significant deterioration in environmental and health standards, promote privatization and deregulation of essential public services, and supplant family farmers in the signatory countries.

The NAFTA structure is expected to increase cross-border trade in North America and stimulate economic growth for stakeholders. Let`s start with a quick look at these two topics. Sixth, the agreement provided business travellers with easy access to all three countries. According to a report by the Think Tank`s Public Policy Think Tank in New York, Council on Foreign Relations (CFR), bilateral agricultural trade tripled between 1994 and 2017 and is considered one of the main economic effects of NAFTA on trade between the United States and Canada, which becomes the largest importer of U.S. agricultural sectors. [64] Fears of job losses in the U.S. manufacturing sector were not due to the fact that manufacturing employment remained « stable ».

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