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Report on NAFTA Negotiations

   

Added on  2020-05-08

3 Pages661 Words85 Views
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NAFTA Negotiations Key points:The North American Free Trade Agreement or NAFTA is being constructed carefullyfor over twenty three years, in order to create a satisfactory balance of protectionismand liberalization.The NAFTA negotiations are being split into two different tracks. One is focused intoimproving and modernizing areas of common interest and the other one ischaracterized by the differences which threaten the negotiations.The modernization track helps in streamlining the custom clearances, regulatoryalignment, facilitating trades for small as well as medium sized enterprises and digitalmodernization.Broader facilitation, regulatory alignment and ecommerce not only helps in reducingcosts of transaction across the world, but also makes it easier for the smaller traders tocompete more effectively and efficiently in the huge market.However, NAFTA received several criticisms as it took away US jobs. The agreementdid many good things which enhanced the economy of the North America, but at thesame time, it also has many issues related to the agreement.These weaknesses of the agreement have severe impact on the Mexican and Americanworkers as well as the environment.Mexican labors are cheaper due to which majority of the manufacturing industries orunits withdrew their production part from the higher cost United States.The US trade business lowered and maximum jobs went to Mexico. Around eightypercent losses were in the manufacturing units and the states which got affected wereNew York, California, Texas and Michigan.This issue also suppressed the wages of US workers.
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