The North American Free Trade Agreement (Nafta) Has Had Which Of The Following Effects

Workers` wages in jobs made possible by NAFTA remained largely lower than comparable jobs in the United States. [4] The sustained attachment of Mexico`s economic growth to an export-intensive model has created new jobs under NAFTA, largely created in the low-wage sector, with real wages in manufacturing falling in 2002 to 12% below the 1994 level. [6] Mexican economists have argued that the higher growth and wages that the law should have created have not been achieved for Mexican workers. Wages in Mexico also stagnated in the years following nafta, and inequality in the country remains high, a trend that reflects economic developments in the United States. Overall, the new income is distributed upwards, so that the new fortunes are not distributed to the vast majority of Mexican workers. [6] As a result of this phenomenon, those who would benefit the most from expressing themselves politically face increasing barriers to entry into the political system due to social isolation and the lack of influence of wealth. [11] More recently, working-class citizens in Mexico share the view that NAFTA has not kept its promises. Wages for manufacturing workers are stagnating and, instead of opportunities, many workers see Nafta as a shutter of expansion. An employee interviewed for The New York Times said, “I thought it [NAFTA] would improve my life, that this agreement would create opportunities for everyone.” [4] Public surveys in Mexico have shown that two out of three people generally view NAFTA as bad for Mexico. [14] Luis Rubio, a pro-free trade researcher, suggested that NAFTA “has awakened the perception that things are going to improve, but the truth is that we have two economies, one export and one that has been abandoned,” suggesting that the NAFTA process was not shared by all.

[15] Owners of large companies operating in Mexico have even been more critical of NAFTA, although they accuse the Mexican government of failing to “put in place measures to protect Mexican companies.” [4] Contrary to some U.S. rhetoric, however, Mexicans view NAFTA as beneficial despite the difficulties associated with the link between the Mexican economy and the United States and continued foreign investment. Overall, the business class mood is that NAFTA needs to be reviewed and not removed. Elites and free trade advocates in Mexico have heralded NAFTA as a success based on new foreign investment and increased stability in Mexico`s trading environment. [15] They also insist that the failures be due to a lack of willingness to pursue the past of those affected by NAFTA. [15] Overall, the working class has a largely negative outlook on NAFTA, where elites and free trade advocates view the benefits of NAFTA outweighing the disadvantages. However, the general belief is that NAFTA must be repaired and not eliminated. On September 30, 2018, Trump signed the USCMA with the other two heads of state and government of other countries (Canada/Mexico).

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