3. Implementation of the North American Free
Trade Agreement (NAFTA) began on January
1, 1994.
While some tariffs were eliminated
immediately, others would take anywhere
from 5-15 years to be eliminated.
4. This agreement removed most barriers for
investment among the United States, Canada,
and Mexico.
In addition, under NAFTA, all non-tariff
barriers to agricultural trade between the
United States and Mexico were eliminated.
5. The Implementation process of NAFTA’s no
barriers was completed in 2008.
In 2008, the last of NAFTA’s transitional
restrictions governing U.S., Mexico and
Canada’s agricultural trade were removed:
This concluded a 14-year project in which the
member countries systematically dismantled
numerous barriers to regional agricultural
trade.
6. NAFTA created the world's largest free trade
area, which now links 444 million people and
producing $17 trillion worth of goods and
services.
The North American Free Trade Agreement
has two Supplements, the North American
Agreement on Environmental Cooperation and
the North American Agreement on Labor
Cooperation
7. Some economists argue that NAFTA has
been beneficial to business owners and
elites in all three countries, but has had
negative impacts on farmers in Mexico who
saw food prices fall based on cheap imports
from U.S. agribusiness and negative
impacts on U.S. workers in manufacturing
and assembly industries who lost jobs.
8. Other economists believe that NAFTA has not
been sufficient (or worked fast enough) to
produce economic convergence, nor to
substantially reduce poverty rates.
In addition, some have suggested that in order
to fully benefit from the agreement, Mexico
must invest more in education and promote
innovation in infrastructure and agriculture.
9. Since labor is cheaper in Mexico, many U.S.
manufacturing industries moved part of their
production from high-cost states to Mexico.
Between 1994 and 2002, the U.S. lost
approximately 1.7 million jobs while gaining
only 794,000 for a net loss of 879,000 jobs.
These industries included, but were not limited
to Agri-businesses.
10. NAFTA expanded the maquiladora program,
in which U.S.-owned companies employed
Mexican workers near the border to cheaply
assemble products for export to the U.S.
According to The Continental Social Alliance,
these workers have; “no labor rights or health
protections, workdays can stretch 12 hours or
more, and if you are a woman, you could be
forced to take a pregnancy test when applying
for a job."
11. In 2007, Canada and Mexico were, respectively,
the first and second largest export markets for
U.S. agricultural products.
Exports to the two markets combined were
greater than exports to the next six largest
markets combined.
12. Agricultural trade increased in both
directions(U.S.-Mexico) under NAFTA from
$7.3 billion in 1994 to $20.1 billion in 2006.
This was an approximately 300% increase in
economic activity: Or 25% year over year
growth (12 years).
13. From 1992-2007, the value of U.S. agricultural
exports worldwide climbed 65%.
Over that same period, U.S. farm and food
exports to Mexico and Canada grew by 156%.
14. NAFTA expanded the maquiladora program,
which enabled U.S.-owned companies to
employ Mexican workers near the border.
This allowed for more efficient assembly of
manufactured goods and in turn, increased
exports to the U.S.
This increased Mexico’s labor force by 30%
16. According to Foreign Policy in Focus Juarez is
“The Murder Capital of the World”.
Jaurez sits adjacent to El Paso, Texas.
NAFTA is believed to blamed by some for the
violence.
17. NAFTA is complicated and often intensely
debated by many.
Although there have been some negative social
consequences associated with NAFTA. Overall
it has increased economic activity for all
trading partners.
