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What were the arguments for and against NAFTA?
The Pros and Cons of NAFTA
- Pro 1: NAFTA lowered the price of many goods.
- Pro 2: NAFTA was good for GDP.
- Pro 3: NAFTA was good for diplomatic relations.
- Pro 4: NAFTA increased exports and created regional production blocs.
- Con 1: NAFTA led to the loss of U.S. manufacturing jobs.
How did NAFTA negatively impact the US?
The loss of these jobs is just the most visible tip of NAFTA’s impact on the U.S. economy. In fact, NAFTA has also contributed to rising income inequality, suppressed real wages for production workers, weakened workers’ collective bargaining powers and ability to organize unions, and reduced fringe benefits.
What did supporters of NAFTA believe?
One of the key provisions of NAFTA provided “national goods” status to products imported from other NAFTA countries. No state, provincial, or local governments could impose taxes or tariffs on those goods. Supporters championed NAFTA because it opened up Mexican markets to U.S. companies like never before.
Who felt the negative effects of NAFTA?
Chart of NAFTA Pros and Cons
| List | Pros | Cons |
|---|---|---|
| Workers | U.S. unions lost leverage while Mexican workers were exploited | |
| Environment | Canada exploited shale fields and Mexican deforestation increased | |
| Oil | Costs less in the United States | Improved Mexican economy |
| Food | U.S. costs lower | Mexican farmers went out of business |
Did NAFTA benefit the US?
NAFTA Benefits for the US Increased Export: since the implementation of NAFTA, US exports have risen from $142 billion to well over $500 billion. US exports to Mexico and Canada rose 156% during this period, while US exports to the rest of the world grew only 65%.
Who did NAFTA benefit the most?
We consider NAFTA as a prolonged impulse function in international trade activities among the three trading partners by employing an intervention-function model. Findings reveal that NAFTA increases bilateral trade between US-Canada and US-Mexico, and in terms of income, NAFTA benefits Canada the most “certainly”.