Question

The United States has entered into trade agreements with other countries in order to set rules and expectations to increase trade and commerce. Research either NAFTA or the TPP. How the deal you chose impact or will impact foreign trade. What were the benefits and any negative consequences from entering these types of trade agreements?

Identify arguments for and against each side of the topic. What are the objectives of each side? (provide citation used)

Answer 1

TOPIC SELECED: NAFTA

NAFTA stands for North American Free Trade Agreement. NAFTA came into effect in 1994. NAFTA is a treaty entered into by the United States, Canada, and Mexico. NAFTA’s objective is to increase economic activity between the United States, Mexico and Canada. Most tariffs on trade between these nations were eliminated to lay the strong foundation for economic growth in these countries.

The primary objections against NAFTA are that the trade agreement may cause unemployment and lower wages in the U.S. while promoting environmental pollution in Mexico. The problem occurs due to the difference between the labor and environmental regulatory standards of the America and Mexico. Another objection of NAFTA is that it promotes pollution. However none of these objections were not justified. NAFTA leads to the relocation of many labor-intensive jobs in industries such as furniture, textiles, and automobiles

In my opinion NAFTA has been successful in its objectives. According to the trade agreement, NAFTA delivered its main objective of expanding the trade. By every reasonable measure, NAFTA has been a public policy success. It has institutionalized and deepened Mexico’s drive to liberalize and modernize the economy, society and political system of the nation. Moreover has spurred investment, trade and economic integration in North America. Additionally, in terms of environmental protection NAFTA had some advantages. It was our first trade agreement to include an environmental assessment and a side agreement on the environment. NAFTA helped to boosted U.S. economic growth, rise out of extreme poverty, lowered the price of many goods and doesn't cost us many jobs. It boosted profits for the businesses of America by giving them wider opportunities to develop, and markets to explore.