THE NORTH AMERICAN FREE TRADE AGREEMENT.
The North American free trade agreement was brought forth into law in 1994. The fundamentals of it were based on an earlier agreement already in place with Canada. The main purpose of NAFTA was to further elaborate on this previous agreement and to basically open the doors of free trade to all three of the North American nations, those being Canada , America, and Mexico.
In the early days of the formation of NAFTA many citizens and politicians alike were very concerned as to the effect it would have on our economy here in the United States. The main cause for concern was directed towards the possible loss of jobs in major industries in America. The arguments that supported NAFTA were very clear and straight to the point. Opening the borders to free trade would create more business commerce,henceforth job growth. The arguments against NAFTA dealt directly with jobs as well. Not the growth of them, but the possible loss of them to lower wages that were being paid to workers in Mexico. Some six years later the results of NAFTA seem pretty clear. In just thefirst three years of NAFTA over two million new jobs were created in the United States alone. As a nation our gross domestic product also grew nearly two percent in thefirst three years. Most, if not all, of this growth in the economy can be attributed to a thirty eight percent rise in expo!
rts to Mexico in thefirst three years of NAFTA, which is totally amazing. The drastic rise in exports was due to the reduction of tariffs between our two countries, which was a major part of the NAFTA treaty.
Despite all the good that has come from NAFTA there are still those who believe it should never have been written into law. Their argument states that many manufacturing jobs have been lost due to NAFTA as was expected which has left many U.S. citizens out of work. While it is true a very small portion of jobs were lost in the …