Saturday, October 26, 2019
The North American Free Trade Agreement Essay -- essays research paper
The North American Free Trade Agreement Since the birth of this great nation in 1776, the United States has remained a dominant world power in many aspects. The American standard of living has been the envy of the world, powered by an economy rivaled by nearly no one. Our economy continues to be the rock with which the global economy can lean on, as evidenced by nations that rely on huge reserves of the dollar because of its stability as a means of settling international debts. Unfortuneatly, despite the solidity that our economy is so often associated with, we have accumulated a 5 trillion dollar (that's 9 zeros) national debt. Something has to be done about this colossal problem to ensure that the United States retains its status as a world power in the global economy. One vital catalyst to help promote growth and neutralize the massive account deficit and foreign debts is the North American Free Trade Agreement. NAFTA, for short, is one positive effort that not surprisingly, has met with the opposition of many. In light of this opposition, it is evident that NAFTA is accomplishing its primary goals and encouraging the growth of the American economy. NAFTA negotiations began on June 11, 1990 when former President George Bush and Mexican President Carlos Salinas de Gurtari met to discuss the possibility of revising current trade policies. The thing that set the NAFTA apart from other trade agreements historically was that it was to be the first trade agreement entered into between two industrial countries and a developing country. By much of the world the NAFTA is often viewed upon as North America's answer to the European trading bloc. Many provisions of the NAFTA take their roots in the Canada-U.S. Free Trade Agreement which became operational January 1, 1989. A target objective was to create free trade between the United States, Mexico, and Canada rather than a comprehensive economic union such as that of the European Community. Whereas the EC dealt with monetary exchange rate issues by implementing a standard in currency called the "Euro-Currency", the NAFTA would be off limits to such control. Like many issues today, this topic was hotly debated. Many people vehemently argued that job loss and low wages would plague the United States and Canada inflicting more damage on these two ... ...rs for projects such as nature preserves, solid waste disposal, and the cleaning up of the Mexico-U.S. border. Another government agency that has been receiving a significant increase in funds is the Mexican equivalent of the United States' EPA. Provisions concerning the environment and industry standards may escape NAFTA, but due to mounting pressure, they will not escape serious revamping at the national level. In conclusion, NAFTA, the brainchild of George Bush and Salinas de Gurtari, has many positive aspects that with a little ironing out could prove to be a dynamic economic catalyst for this country. By using this export-led growth strategy centered around a reduction in tariffs over a 15 year period, the member nations can achieve all that they hoped to. After about 2 years of NAFTA, the U.S. has shown formidable gains in it's economy. To avoid problems that critics argue such as job loss and depletion of the environment, the U.S., Canada, and Mexico can create policies on the national level to curb such things as these from happening. All in all, granted support from the constituencies of the member nations, NAFTA should be around for a while.