Pros and Cons of Nafta Essay - 1568 Words

Pros and cons of NAFTA NAFTA, the North American Free Trade Agreement, has been getting a lot of not so favorable, and sometimes, controversial headlines in recent years. Some critics blame it for the current labor shortages in the United States, due to the fact that most U.S. companies have been and continue to outsource and ship jobs overseas. However, its proponents have been hailing it as a great success in helping lowering national prices on certain manufactured goods and services and that it has caused to increase wages for certain jobs within the U.S. The Agreement was signed by Bill Clinton, president of the United States, Brian Mulroney of Canada, and Carlos Salinas de Gortari of Mexico. It was hailed as the highest†¦show more content†¦These arent easily transported, so being able to export them to nearby countries is important. NAFTA boosted U.S. service exports to Canada and Mexico from $25 billion in 1993 to $106.8 billion in 2007 (latest data available). Service exports were $40 billion. NAFTA eliminated trade barriers in nearly all service sectors, which are often highly regulated. NAFTA requires governments to publish all regulations, lowering hidden costs of doing business. Reduced Oil and Grocery Prices: The U.S. imported $157.8 billion in oil from Mexico and Canada (shale oil).This also reduces U.S. reliance on oil imports from the Middle East and Venezuela. It is especially important now that the U.S. no longer imports oil from . Why? Mexico is a friendly country, whereas Venezuelas president often criticizes the U.S. Both Venezuela and Iran have started selling oil in currencies other than the dollar, contributing to the decline in the dollars value. Since NAFTA eliminates tariffs, oil prices are lower. The same is true for food imports, which totaled $28.9 billion in 2008. Stepped Up Foreign Direct Investment: Since NAFTA was enacted, U.S. foreign direct investment (FDI) in Canada and Mexico more than tripled to $348.7 billion (as of 2007, latest data available). Canadian and Mexican FDI in the U.S. grew to $219.2 billion. NAFTA reduces investors risk by guaranteeing they will have the same legal rights as local investors. Through NAFTA, investors can makeShow MoreRelatedPros and Cons of NAFTA Essay1603 Words   |  7 PagesNAFTA is a trade agreement signed by the North American nations of Canada, Mexico and the US. In terms of combined GDP between the countries, it has created the largest trade bloc in the world. The NAFTA is a result of many years of negotiations, starting in 1986 under President Ronald Reagan, and finally signed on the 17th of December in 1992 under President George H. W. Bush. It became fully implemented in 2008 under President Barack Obama. The trade agreement was largely implemented as a resultRead MorePros And Cons Of Tariffs1127 Words   |  5 Pages Pros and Cons of Tariffs Principles of Macroeconomics Columbia Southern University BBA-2401 Angelo Jones Managing the how goods and services enter or leave this country (import/export) is an important process that allows for us to control the economic status of our nation. Sometimes imposing tariffs on the goods imported balances our labor cost, resources and government supported industry. A tariff by definition is a tax or duty to be paid on a particular class of importsRead MoreBussiness Qa Essay761 Words   |  4 Pagespractice. Outsourcing offshore can allow companies to tap into foreign markets and expand their businesses. 6. Outline the potential pros and cons of the 3 key strategies for developing foreign markets: exporting, licensing and franchising, and direct investment. Exporting |Pros: |Cons: | | | Read MoreThe Pros And Cons Of Tariffs Essay1628 Words   |  7 PagesPresenting the Pros and Cons of Tariffs An important part of managing the economic status of a nation is to manage the methods in which goods and services are imported and exported into and out of the country. Because of differing resources, labor costs, and government support of industry, fiscal policy sometimes includes placing a tariff on imported goods in an attempt to level the economic playing field. â€Å"Tariff† comes originally from the Arabic word ta’rifah meaning â€Å"to make known.† In a moreRead MoreEssay on North American Free Trade Agreement NAFTA1710 Words   |  7 PagesNAFTA: North American Free Trade Agreement Implementation of the North American Free Trade Agreement (NAFTA) began on January 1, 1994, and is one of the United States’ most significant regional trade agreements. The final provisions of the NAFTA were fully implemented on January 1, 2008. With full implementation, the last remaining trade restriction on a handful of agricultural commodities such as U.S. exports to Mexico of corn, dry edible beans, nonfat dry milk and high fructose corn syrupRead MoreThe North American Free Trade Agreement1711 Words   |  7 PagesThis paper will discuss four components of the North American Free Trade Agreement: Background, events, pros and cons. Upon the research, you will discover four online articles to provide more detail and examples. This research will indicate how it was developed and the reasoning on why it would benefit the nation. Also, it will provide events that occur after the agreement was signed by congress and the recession the countries experience during the early 2000s. There will be a chart locatedRead MoreNorth American Free Trade Agreement981 Words   |  4 Pagesbetter known as, â€Å"NAFTA†. The use of NAFTA is in America’s best interest because, it benefits U.S. jobs, improves trade relations, promoted specialization of trade. Jobs in the United States thrived with the application of NAFTA. Millions of new jobs were created as trade became easier between the countries of North America. In an article titled, â€Å"North American Free Trade Agreement†, author Carol Wise speaks of the impact this agreement has made on each country involved in NAFTA. It has been provenRead MoreThe Transatlantic Trade And Investment Partnership1284 Words   |  6 Pagessociety. The North American Free Trade Agreement (NAFTA) which entered into force on 1 January, 1994 was signed by the United States, Canada and Mexico. This treaty is to eliminate barriers of tariff in agriculture, manufacturing and service and eliminate investment restrictions. It also protects intellectual property rights and promotes the rate of economic growth of Mexico. However, there was many oppositions when America entered into NAFTA. The most obviously reason is that a lot of workersRead MoreEssay about NAFTA1048 Words   |  5 PagesOn January 1st, 1994 the North American Free Trade Agreement, commonly referred to as NAFTA, went into effect after years of contentious battle and debate amongst those drafting it and viewing it from afar. In fact, it took three U.S. Presidents to finally complete the deal: Reagan, Bush Sr., and ultimately, Clinton. Those who opposed it warned of vanishing industries, skyrocketing unemployment, and of unfair consequences to those that were less educat ed. Ross Perot famously stated, â€Å" giant suckingRead MoreThe Main Goals Of Free Trade Agreements1186 Words   |  5 PagesAgreement or NAFTA. Organized in 1994, the agreement included the United States, Canada, and Mexico. The agreement called for many tariffs to be taken off products between the nations, allowing trade between the countries to become easier (International). NAFTA also increased the number of exports traded between the three nations. Goods traded in 2008 were calculated to be almost worth 1 trillion dollars (Murphy). Agricultural items were, and still are, the biggest trading product under NAFTA. America