Nafta: For Trade

            
            
            
            
            
            
             I believe that the North American Free Trade Agreement.
             was an inevitable step in the evolution of the United States.
             economic policy. The globilization of the world economy due.
             to technological advances in computers and communications.
             have shrunk the world to the point where no single country.
             acting alone can effectively compete on the foreign market.
             Even the United States, with its vast resources, can not.
             have an absolute advantage in all thing that it produces. It.
             does not have unlimited factors of endowments and must do.
             its best to make these available to the companies within its.
             borders. .
             There are two basic sides to the argument over the.
             North American Free Trade Agreement. The Pro-NAFTA side.
             views the treaty as a way to provide a large, efficient.
             production base for the entire geopolitical area. This would.
             result in lower cost to consumers and an increase in exports.
             to Mexico and Canada. The multiplier effect would then take.
             place producing growth in all areas. The Anti-NAFTA group.
             feels that Mexico will be an unequal partner due to the.
             lower wage rates of the Mexican populace, causing the loss.
             of thousands of jobs in the United States and Canada.
             Environmentalist fear that pollution will spread across the.
             continent. .
             A Free Trade Area is, by definition, an area where all.
             barriers to trade are lifted. This is not the case with.
             regards to NAFTA at this point. Currently most of the trade.
             barriers between the United States and Canada are lifted but.
             those with Mexico have largely been kept in place. This is.
             an obvious disparity on the part of the Mexican government.
             but is due largely to the proportional loss of income to the.
             governments in each country. The GDP of Mexico is way below.
             the level of the other two countries. Therefore, the loss of.
             revenue would have a major impact on the daily life of its.
             population and the operation of the government . Never.
             before has a major economic power like the United States.
             considered a free trade area with an under-developed third.