In: Operations Management
Has NAFTA been good for Canada, Mexico, and the US? What changes, if any, should be made to the agreement, and why?
In my opinion, NAFTA has not been good for Canada, Mexico and the US because it has resulted in loss of jobs and suppressed certain industries such as automotive, textile, IT etc in the US and has forced Mexican farmers out of jobs because of subsidised farm products available in the Mexican market from the US. Below are the changes that should be made to the agreement:
1. NAFTA agreement must have provision of providing subsidy to thr manufacturing industries in the US so that there is a boost provided to these industries which results in job creation and decrease in jobs going out of US due to it.
2. Mexican farmers must be provided subsidy to produce and sell farm products in the Mexican market as well as export them in other markets. This would help them in securing their stronghold for farm products and not force them out of job. It will also subside illegal crossing of Mexican farmers into the US to find jobs.
3. Environmental policies must also be included under NAFTA and it must be ensured that there are strict policies made which reduce the impact on environment and mitigate pollution due to establishment of industries in the US, Canada and Mexico due to NAFTA.