Monday, January 19, 2009

The North American Free Trade Agreement( NAFTA) consists of three distinct economies: wealthy United States, middle-class Canada and striving Mexico. The agreement was meant to create millions of jobs, reduce mexican immigration and raise the quality of life from "the Yukon to Yucatan." Talks about the program began under President George Bush and the agreement was passed under Bill Clinton's administration. Since then the agreement has been subjected to much criticism such as the deindustrialization of the US, the strained relationship between Canada and the US, and the failed economic promises of Mexico.

After NAFTA was passed, the United States invested money into Mexico's factories, factories to build automobiles, electronics, etc. Mexico was expected to invest in infrastructure, education, housing and sanitation. Mexican president Carlos Salinas de Gortari assured the Clinton administration that Mexico would do its part. But, this did not happen. Instead, mexican manufacturers were being shut down because they were no longer protected by tarriffs. Maquilladoras, or cheap-labor, fast and high quality factories began to open in the border towns of Mexico and US. These factories soon replaced Mexican-owned manufacturers.

Next, the agriculture business in Mexico did not run its planned course. Under the NAFTA agreement, politicians assumed Mexico would transition to producing strawberries and vegetables, instead of massive amounts of corn and with the help of foreign investment, they export the products to the US. Instead, the farmers exported on their own, partly because Mexico reduced the tariffs on corn. Then, in the same year NAFTA was passed, Mexico experienced an economic crisis from '94 to '95.

Meanwhile, immigration has increased. In addition to the poor economy in Mexico, many new people are immigrating to the US to reunite with their families. It is a natural action and sometimes economics are not involved.

More information about NAFTA and immigration can be read in this New York Times Article:http://www.nytimes.com/2007/02/18/weekinreview/18uchitelle.html?scp=3&sq=NAFTA&st=cse

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