The Impact of NAFTA on American Business Interests
The Impact of NAFTA on American Business Interests
The North American Free Trade Agreement (NFTA) is an import/export agreement between the governments of the United States of America, the United Mexican States and Canada designed to “remove most barriers to trade and investment” among nation [http://www.fas.usda.gov/itp/policy/nafta/nafte.html, July, 2001]. The agreement was implemented on January 1, 1994 effectively eliminating all non-tariff barriers to agricultural trade between the USA and Mexico. The foundational objectives of NAFTA include creating an expanded and secure market for the goods and services of each nation, improving working conditions and living standards in each nation, creating new employment opportunities, and enhancing basic worker rights [http://www.the-tech.mit.edu/Bulletins/Nafta/00.preamble, January 1994].
After seven years of operating under the guidelines of NAFTA, there are mixed reports relative to its success within the United States economy and the American business environment. The United States government tends to praise the success of NAFTA while American working people typically believe “NAFTA has thus far largely failed” and in fact has had a negative impact on many businesses [http://www.epinet.org/briefingpapers/nafta01, April, 2001].
The United States Government’s Claim for Success
According to the United States Department of Agriculture (USDA) and the Foreign Agriculture Service (FAS), the markets created by the implementation of NAFTA have been “one of the brightest spots” for farmers, agricultural exporters and the industries that support them, claiming that more than 25% of all agriculture exports are purchased by NAFTA nations [http://www.fas.usda.gov/itp/policy/nafta/nafta_backgrounder.htm, July, 2001]. Since the implementation of NAFTA, agricultural trade between the US and Mexico has increased by 55% accounting for more than 11.5 million dollars if business. The agricultural trade between Canada and the US also recorded increases of nearly 50% and more the 13 billion dollars of revenue.
Opponents of NAFTA point to the increased US import activities as a serious downfall of NAFTA’s original promise of creating an expanded and secure market for the goods and services of each nations. The government argues that NAFTA merely an assures of a free market society which has always been a foundational element of capitalism and a pillar of American business success. The government also argues that many of the “expanded” US exports opportunities would have been lost without NAFTA. In addition, the government indicates that increased import competition should be expected and in fact will have a positive effect on the US economy. As trade barriers are eliminated, trading becomes subject to open...