The North American Free Trade Agreement has opened doors to Mexican economy, benefiting monetary and industrial aspects but affecting environmentaland human situations in the country. The purpose of my essay is to answer this question: “How is NAFTA beneficial or harmful to Mexico?”
“The North American Free Trade Agreement is the trade blocin North America created by the North American Free Trade Agreement (NAFTA) and its two supplements, the North American Agreement on Environmental Cooperation (NAAEC) and The North American Agreementon Labor Cooperation (NAALC), whose members are Canada, Mexico, and the United States. It came into effect on January 1st, 1994 and it remains as the largest trade bloc.” (Wikipedia.org)
Someeconomists of the world claim that NAFTA has been positive for Mexico because big Mexican businesses have increased their access to northern capital industries. Thanks to the NAFTA, Mexico, Canada and theUnited States are able to trade with freedom various products that make our lives easier and more comfortable.
NAFTA has been quite positive for the exportation of agriculture. “NAFTA definitelyfurther plugged Mexico into the most dynamic economy in the world” (Guillermo Perry, World Bank Chief Economist for Latin America and the Caribbean). “Mexico has managed to achieve exponential growth inexports as a consequence of the trade accord”. (Jaime Serra Puche, Secretary of Commerce)
But other economists don’t agree completely with these theories. “NAFTA has had positive effects in Mexicobut they could have been better. Free trade definitely brings new economic opportunities, but the lessons from NAFTA for other countries negotiating with the U.S. are that free trade alone is notenough without institutional reforms.” (David de Ferranti, World Bank Vice President for Latin America) This means that Mexico can not be benefitted by NAFTA without political and economic reforms....