Term Paper.pdf - On January 2nd 1988 Canada and the United States opened up their borders allowing tariff free goods to flow in and out of the two

Term Paper.pdf - On January 2nd 1988 Canada and the United...

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On January 2nd, 1988 Canada and the United States opened up their borders allowing tariff free goods to flow in and out of the two countries by signing the Canada-US. Free Trade Agreement. Six years later on January 1st, 1994, the North American Free Trade Agreement, better known as NAFTA was passed. The North American Free Trade Agreement was designed to eliminate trade barriers, including the reduction or elimination of many tariff restrictions to agricultural trade. NAFTA superseded the previous free trade agreement between Canada and the US the only difference this time was the addition of a third country, Mexico. Mexican leaders lobbied to become a part of this free trade agreement, in hopes of stimulating its failing economy. For the most part, it has been considered positive by the players who have reaped the most benefits, but nobody takes into consideration who lost the most by signing into this ordeal. Since it's signing in 1994, Mexico's economy, resources, land, and most importantly it's people have been negatively affected. Coming into its 20th year anniversary NAFTA and it's effects are still felt today. Some of today's hottest topics such as immigration and our involvement in the drug war are offsprings of this bill and we have continuously made Mexico our scapegoat to these problems when in reality if we trace the roots of these problems we find that NAFTA has played a huge role in directly causing these issues. At the time of NAFTA's proposal in 1993, Mexico knew it needed to step up its foreign investment to help stimulate its economy but needed some help. NAFTA became the perfect opportunity for this. Mexico's President at the time Carlos Salinas, ensured his people that foreign investment would "jump start" the country's development creating a richer and more prosperous Mexico. While it is true that in order for an underdeveloped country to move more rapidly and efficiently into an effective exporter of domestic products, a free trade system with SANCHEZ PAGE 7
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not one but two developed neighboring countries would be a huge success, the growing pains associated with the leveling of the playing fields are evident. Due to the duty-free importation of goods, Mexican farmer products were put at a disadvantage compared to cheap American produce that was making it's way down to Mexican markets. In an analysis of US-Mexico trade and competition done by the Office of Technology Assessment, to put to rest worries of high competition of Mexico's produce, office stated; "Despite lower labor costs for most agricultural products, Mexico could not expect to achieve across-the-board advantages in agriculture even if all trade restrictions were removed. The United States would retain large advantages rooted in agricultural research (including bio-technology). These advantages include superior plant and livestock
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