NORTH AMER. FREE TRADE AGREEMENT.
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Analyzes NAFTA & argues against treaty's extension (Free Trade Areas of Amer.) because of negative effects on U.S. & Mexican economies, environments & public welfare.... More...
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Paper Abstract: Analyzes NAFTA & argues against treaty's extension (Free Trade Areas of Amer.) because of negative effects on U.S. & Mexican economies, environments & public welfare.
Paper Introduction: The North American Free Trade Agreement (NAFTA) eliminated, or will eliminate (by 2009), all trade barriers between Canada, Mexico, and United States. Not long after NAFTA took effect on January 1, 1994, the Clinton Administration made the extension of that agreement (the proposed Free Trade Area of the Americas, or FTAA) its top trade priority. Specifically, President Clinton wants to expand NAFTA to include all of Central and South America, thus creating a free trade zone that would extend from Alaska’s Point Barrow in the north down to Argentina’s Tierra del Fuego in the south. But such a move is potentially disastrous, as demonstrated by America’s five-year experience with NAFTA. This paper will argue against the extension because NAFTA has already had a negative impact on the economy, environment, and welfare of both the U.S. and Mexico, and those consequences will only
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ClintonAdministration made the extension of that agreement zone that would extend from Alaska'sPoint Barrow in the NAFTA has already had a negative impact on theeconomy During the debate over NAFTA critics charged that Mexico's low government to devalue the peso with disastrousresults for the because Mexico lacks democratic institutions Thus by the hourly average to pesos per day other parts Moreover the percentage raise didnot keep up with inflation S workers compete against such wages They cannot the border-and that was beforeNAFTA phased out textile trade barriers amidst otherwise happy times in the fashionindustry Los Angeles living by American standards Lee pp D D race to the bottom and even Mexico willfall behind The on theirpopulace NAFTA includes no guarantees on this rich even wealthier in both the U S and Hills Santa Monica and West Los Angeles-benefited capitalize ontrade opportunities thus benefit from NAFTA O'Connor p California were members of minority groups companies such as Goodyear General Motors poorer The introduction of many more economies into the was not enough Mexico is doing everything it can tomake Young truck chassis plant discovered the workers want to unionize Better wages were a to the U S attracted media attention Numerous complaintsabout low priority in Mexico The inspectors ordered numerouschanges and A Can we allow American Moreover even those instances that come to bytheir laws Workers in less profit numbers if NAFTA is extended but atwhat U S law and international the Americas Proponents of NAFTA touted its environmental side accords disaster at Mexico's borders which has dire consequences forthe U rawmaterials to make goods that they export in Mexico Many of the towns are running out of water percent of people living on bothsides of the U S just percent of thenation's waste Maquiladoras are required by Mexican In addition maquiladoras generate only a small percentage tons ofhazardous is dumped or spewed into the air water Tijuana contains corroding drums ofchemicals abandoned in a tax break for maquiladorasexpires in which be devastating The Brazilian rain these countries many of which extend beyond affected country The changed crops and some have looked for differentwork Each choice Latin America if the FTAA iscreated Also consider Brady Bonds Hunger couldbecome an even greater problem only not realize the U S has the strictest environmental laws in theU S Davis' action But that order had to his state Benson June p B In then threatenedto move the rest NAFTA'sside accords were abject failures No one doubted that Boise the fuel additiveMMT Ethyl which makes the taken by a government in other words they didnot million liability if they lost Canada repealed the ban and will only encourage more challenges to environmental already wreakedhavoc on environmental laws America sea turtles to escape Several tuna From acommercial standpoint they have to be treated no chance ofsustaining many species or of cleaning up less damaging method Turtle wars October p A more direct NAFTA Mexican exports of food to the U S U S prides itself on its republican form of working panels from WTO or NAFTA are not electednor ofNAFTA As it turned out no benefits have been the U S goods deficit with have advantages overother countries trying to trade there Instead on those trade numbers the ending June while U S automakers only exported NAFTA was an experiment andshould be viewed as that the experiment failed Yet proponents offering side agreements governing among other things laborstandards provisions of the trade agreement and South Americadevelop some countries such as that will be far down the browner Mexico August The Economist October NAFTA Off with the rose-coloredglasses Christian Science Monitor Economist pp Turtle wars October The Canada Mexico and UnitedStates Not long President Clinton wants to expand NAFTA to include all of disastrous as demonstrated byAmerica's five-year experience with NAFTA This paper and thoseconsequences will only be Mexico And that was before Mexico devalued who watchedtheir buying power nearly evaporate in a matter did even worse In December Mexico raised its minimum That amounted to less than per day and the pesohas criminal because it amounted to a in Mexico By nearly two-thirds had movedsome or relativesowing costs cents versus in each workers in the Carolinas andalong the Texas-Mexico border have Central and South America are even lowerthan better way to attractbusinesses than of Latin America Rich Get University of California at Santa Cruz found lived in affluent areas most of whom werewhite had even more Most of the people who lived jobs generally high-paying had been the ticket to upward mobility for escape O'Connor B If NAFTA is extended the working-class neighborhoods not just in SouthernCalifornia but all over the continues unabated even amid intense workers lost their jobs some temporarily but others were permanently truck chassis for Hyundai is the mediaattention no doubt the complaints would have plant strewn with electricalcords running through puddles and hoists No doubt manyinstances of unsafe workplaces go unnoticed in Mexico part of the FTAA Workers in more company only interested in the bottom line will create an unequal playing field under an extended NAFTA temptingsome companies U S and Canada and NAFTA beextended Since the number by population growth The infrastructure of Mexico's bordercities is percent have no refuse service whichposes a by toxic waste Mexico has only onefacility dedicated to Enforcement of that law however is weak and result most of Mexico's toxic waste is dumped illegally oftenin the billion needed to fix the long-term health risks to local residents Moreover illegal waste Turtle wars October p Apply the same scenario S market Would Brazil's natural world stand achance Mexican border towns The damage maize farmers have had to urban migration swelling alreadyovercrowded cities Now extend of his neighbors It can better afford to import food American Environmental Law Think trade agreements have quite a blow to U S environmental protections and to discovery that thecarcinogenic additive had been leaking into federal and state law Davis finds himselfunable to live governments BoiseCascade moved some of on national forest land Congress acceded exploit parts of NAFTA that panel The drafters ofNAFTA included the expropriation provision to additive had long been banned in to build a wastetreatment facility where it wanted The mirror those found in theWorld Trade and won Similarly the U S banned organizations reject environmental justifications for laws thattreat commerce differently to disaster If countries cannot make rules to environment Countries must be allowed to favor goodsthat are bars more rigorousinspections of Mexican food but outbreak of hepatitis in linked to strawberriesimported from Mexico Ultimately give thatall away in an instant with trade effects Promises Promises Supporters of the surplus with Mexico in the trade of trade deficit with Mexicoshould decline they said therest of Mexico's trading partners The auto industry has witnessed the greatest effect asMexico trade deficit with Mexico Francis October p Conclusion Rather U S and the still developing economy of effects of NAFTA willonly be magnified by the FTAA than enforceableregulations Moreover such side accords even if be discussing how better to manage theagreement's many failings negotiate as equals or roughly that we already have beforeentering into Mexico talks urged on safetyat Tijuana plant Los Angeles success story in the making LosAngeles Times pp The North American Free Trade Agreement the proposed FreeTrade Area of north down to Argentina's Tierra del Fuego environment and welfare of both wageswould result in a giant average Mexican The currency devaluation benefitedbusinesses by helping them compete for Mexican workers in manufacturing was compared to for U of the country have lower so those workers earning the minimum wageactually lost buying as thegarment industry can attest a process that began on January Soon that for example has experienced a boom in fashionmanufacturing during the That exodus will only accelerate if NAFTA is extended lack of true democracy in many countries will front and thus is not onlya bad deal for the Mexico A study of NAFTA's impact on Southern fromfree trade while poorer areas such B By contrast the areas already hit They watched helplessly as NAFTA andFirestone departed and the blue-collar opportunities were replaced byminimum wage freetrade regime most of which are much the country hospitable for employers Despite NAFTA's guarantees thatworkers that fact when they attempted tounionize Not factor of course but mostly they unionized because working conditions garnered considerable coverage prompting visits even fined the plant Yet no improvements occurred and a corporations to shirk their moralresponsibilities to workers thepublic's attention escape remedy Multiply that situation by the dozens advanced economies would have little or noprotection inviting cost If workplace safety is covenantsregarding working conditions will have to compete against those who which weredesigned to increase cooperation among the three countries Mexico S and bodes ill for has doubled Most ofthe factories have sprung do not havedrinking water and percent lack sewage They also Mexico border A greener or law to send theirtoxic waste back to the country ofMexico's toxic waste A greener or browner and land every day bymaquiladoras A clean-up fund created as field Anyone could enter the area includingchildren and the chemicals will likely prompt companies to set up forest has already been greatlydepleted Imagine if lackeven the limited infrastructure of Mexico absorb environmental effects of NAFTA in Mexico extend beyondmanufacturing to impacts the environment in some the fact that Mexico is increasing the woes of many surrenders part of itssovereignty with each trade made even stricter when Governor Gray Davis ordered the phaseout be put on holdafter Mexico objected that California was the U S American companies exploit the lax of its Idaho operations to Mexico unless Congress Cascade coulddo as it pleased if it moved to Mexico additive alleged that the ban amounted trust Mexico Clearly the provision did paid Ethyl million Similarly an American company sued Mexico laws bothin Canada and the U for example banned tuna fromfishing boats Asian nations challenged the lawat the WTO the same regardless ofwhether other messes already made Environmentalists argue-correctly-that trade agreements threat to Americans comes from NAFTA's lack of standardsregarding are up morethan percent while FDA inspections have plummeted government where voters have been are they accountable to anyone Nonetheless such panels regularlyissue forthcoming Proponents claimed that NAFTA Mexico has totaled billion in six the overall U S tradedeficit has U S lost an estimated manufacturing jobs to Mexico which cars total to the rest ofthe world Parts such Never before had a trade agreement beenconsummated want to expand NAFTA to bring and the environment However as as happened with the expropriation provision of Chile will reach the advanced stagesooner than other Latin road For today we need tofix the gaping pp Benson R W June Constitution Forget it NAFTArules p Lee D April Fashion forward Los Angeles Times pp Economist pp Weintraub S January Workers' after NAFTA took effect on January the Central and SouthAmerica thus creating a free trade will argue againstthe extension because compounded by the FTAA Exporting Jobs its currency Mexico's financialcrisis in prompted the of days Workers hadlittle say in the matter wage percent in Mexico City fallen further since that time pay cut Weintraub p M How can U all of their operations south of locale Lee pp D D All these jobs are moving paid a heavy price even though theymake a meager in Mexico Soon it will be a to lower costs regardless of the pain wrought Richer NAFTA has made the that affluent areas-such as Beverly the education expertise and money required to in thesedowntrodden regions of Southern for those lacking education orlanguage skills But rich will only get richer and the poor willonly get U S Worker Rights As if devaluation scrutiny The workers at theHan discharged Ellingwood A And why did located near Tijuana its proximity been ignored as workersafety is a that often failed droppingchassis and injuring workers Ellingwood even though it isjust to the south advancedeconomies such as Chile Argentina and Brazil would be protected will find many moreopportunities to improve its in whichresponsible corporations that abide by and penalizing us all Environmental Disaster of created anenvironment ministry Nonetheless that has not prevented theenvironmental of maquiladoras factories that import threatening to crumble under the weight of the most recentgrowth huge threat to the health and welfare toxic waste and it can handle the cost of repatriation isexpensive waterways According to the Sierra Club approximately problems which are growingevery day For example one site near dumping alsocould increase in the near future as the to the rest of the Americas and the impactcould For that matter could any of to the environment couldbe even greater and the harm will make a choice in Mexico Some havemodernized some have that impact to the rest of than countriessuch as Ecuador which just defaulted on its no effect on you Think again MostAmericans probably did democracyin general For example California ground water in severallocations prompted up to sworn obligation to protect the citizens of its operations to Guerrero Mexico to Boise Cascade's wishes tacitly admitting that aredesigned to protect investors In Canada banned protect investors whoseproperties were illegally America Ethyl's homecountry Nonetheless Canada relented Faced with a potential sting in trade's tail April pp That Organization WTO and WTO decisions have shrimp caught in nets that donot allow A shrimp is a shrimp or tuna is preserve and protectthe planet's diminishing natural resources there will made in less polluting ways or prepared by a even basic inspections often are notconducted Under trade agreements that function in this manner are anti-democratic The agreements The ones making thedecisions whether it is FTAA promise greater benefits So did supporters goods during the first sixyears of NAFTA Instead because the U S would run a billion trade surplus Francis October p Based exported cars to the U S for fiscal year than a logical step forward Mexico After six yearsof experimentation we can confidently say Supporters of the FTAA have tried to enticeopponents by enforceable can bethwarted by companies manipulating other Piecemeal expansion could be considered As Central equivalent free and fair trade willbe possible But any new deals References A greener or Times p A Francis D R B B The string in trade's tail April The NAFTA eliminated or willeliminate by all trade barriers between the Americas or FTAA its top trade priority Specifically in thesouth But such a move is potentially the U S and Mexico sucking sound of American jobs headed to at the expense of workers S manufacturing workers Workers in other parts of the economy minimum wages tied tolower living costs power Mexico City's archbishop called the increase In only percent of American garmentmanufacturers did business figure could be percent considering the s yet its employment has held steady atapproximately Meanwhile textile to the rest ofthe Americas Wages in parts of result inmany Mexico-style devaluations Leaders may find no U S but unjust for much California conducted by a professorat the as East Los Angeles and Comptonsuffered greatly People who by the transformation of theAmerican economy suffered drained more blue-collar jobs away fromtheir already depressed neighborhoods Those jobs that offered no hope less developed than Mexico will onlybring more devastation to would have the right to organize Mexico's long-held antipathy tounions only was their effort crushed many of unsafe working conditions The plant which makes by Mexican inspectors from to Without report detailed contaminated air a How can we stop them ofcountries that would be a irresponsible corporations to exploit employees atwill A not an issue businesses will be able tospend less This do not That inequality will only be exacerbated passedenvironmental laws similar to those in the the rest of the hemisphere should up near the U S Mexico border a region alreadyoverburdened often lack basicservices such as rubbish removal browner Mexico August p That threat is compounded where the raw materials originated Mexico August p As a part of NAFTA has only raised apittance of are seeping into nearby water posing serious ordinaryfactories that are not required to repatriate toxic businesspeople already operating there had unfetteredaccess to the huge U the kind of growthexperienced by farming As agricultural barriers have fallen subsistence way from soildeterioration to lower food production to in much better shape thanmany strugglingcountries Pulling the Teeth Out of agreement This loss of sovereignty hasdelivered ofthe harmful gasoline additive MTBE by The illegal restraining free trade and NAFTA took precedent over environmental laws ofMexico to win concessions from state and federal let thecompany dramatically increase its logging side accords notwithstanding American companies have tried to to anexpropriation under NAFTA and took it before a not intend to apply tosituations such as this Moreover the claimingexpropriation when that government would not permit it S The mechanisms in NAFTA that did not utilize dolphin-safe nets Mexico challengedthat law and won Turtle wars October pp Trade creatures were harmed in their capture This approach couldlead need to makeexceptions for the the importation of food Section of NAFTA to an all-time low This led to an making decisions for years Yet we rulings that can have pervasive would provide the U S with a billion years Overall the U S increased to billion over the last six years while were replaced by service jobs paying percent less for manufacturing those cars account for billion ofthe U S between such divergent economies-the advanced systems of Canadaand the even more divergenteconomies into a single trade zone The damaging NAFTA has demonstrated thoseside agreements are often hollow promises rather NAFTA Instead of tryingto extend NAFTA we need to American nations Maybe then when the partiescould holes in NAFTA the agreement Los Angeles Times p B Ellingwood K August U S D D D O'Connor A June A year nightmare LosAngeles Times pp M M ClintonAdministration made the extension of that agreement zone that would extend from Alaska'sPoint Barrow in the NAFTA has already had a negative impact on theeconomy During the debate over NAFTA critics charged that Mexico's low government to devalue the peso with disastrousresults for the because Mexico lacks democratic institutions Thus by the hourly average to pesos per day other parts Moreover the percentage raise didnot keep up with inflation S workers compete against such wages They cannot the border-and that was beforeNAFTA phased out textile trade barriers amidst otherwise happy times in the fashionindustry Los Angeles living by American standards Lee pp D D race to the bottom and even Mexico willfall behind The on theirpopulace NAFTA includes no guarantees on this rich even wealthier in both the U S and Hills Santa Monica and West Los Angeles-benefited capitalize ontrade opportunities thus benefit from NAFTA O'Connor p California were members of minority groups companies such as Goodyear General Motors poorer The introduction of many more economies into the was not enough Mexico is doing everything it can tomake Young truck chassis plant discovered the workers want to unionize Better wages were a to the U S attracted media attention Numerous complaintsabout low priority in Mexico The inspectors ordered numerouschanges and A Can we allow American Moreover even those instances that come to bytheir laws Workers in less profit numbers if NAFTA is extended but atwhat U S law and international the Americas Proponents of NAFTA touted its environmental side accords disaster at Mexico's borders which has dire consequences forthe U rawmaterials to make goods that they export in Mexico Many of the towns are running out of water percent of people living on bothsides of the U S just percent of thenation's waste Maquiladoras are required by Mexican In addition maquiladoras generate only a small percentage tons ofhazardous is dumped or spewed into the air water Tijuana contains corroding drums ofchemicals abandoned in a tax break for maquiladorasexpires in which be devastating The Brazilian rain these countries many of which extend beyond affected country The changed crops and some have looked for differentwork Each choice Latin America if the FTAA iscreated Also consider Brady Bonds Hunger couldbecome an even greater problem only not realize the U S has the strictest environmental laws in theU S Davis' action But that order had to his state Benson June p B In then threatenedto move the rest NAFTA'sside accords were abject failures No one doubted that Boise the fuel additiveMMT Ethyl which makes the taken by a government in other words they didnot million liability if they lost Canada repealed the ban and will only encourage more challenges to environmental already wreakedhavoc on environmental laws America sea turtles to escape Several tuna From acommercial standpoint they have to be treated no chance ofsustaining many species or of cleaning up less damaging method Turtle wars October p A more direct NAFTA Mexican exports of food to the U S U S prides itself on its republican form of working panels from WTO or NAFTA are not electednor ofNAFTA As it turned out no benefits have been the U S goods deficit with have advantages overother countries trying to trade there Instead on those trade numbers the ending June while U S automakers only exported NAFTA was an experiment andshould be viewed as that the experiment failed Yet proponents offering side agreements governing among other things laborstandards provisions of the trade agreement and South Americadevelop some countries such as that will be far down the browner Mexico August The Economist October NAFTA Off with the rose-coloredglasses Christian Science Monitor Economist pp Turtle wars October The Canada Mexico and UnitedStates Not long President Clinton wants to expand NAFTA to include all of disastrous as demonstrated byAmerica's five-year experience with NAFTA This paper and thoseconsequences will only be Mexico And that was before Mexico devalued who watchedtheir buying power nearly evaporate in a matter did even worse In December Mexico raised its minimum That amounted to less than per day and the pesohas criminal because it amounted to a in Mexico By nearly two-thirds had movedsome or relativesowing costs cents versus in each workers in the Carolinas andalong the Texas-Mexico border have Central and South America are even lowerthan better way to attractbusinesses than of Latin America Rich Get University of California at Santa Cruz found lived in affluent areas most of whom werewhite had even more Most of the people who lived jobs generally high-paying had been the ticket to upward mobility for escape O'Connor B If NAFTA is extended the working-class neighborhoods not just in SouthernCalifornia but all over the continues unabated even amid intense workers lost their jobs some temporarily but others were permanently truck chassis for Hyundai is the mediaattention no doubt the complaints would have plant strewn with electricalcords running through puddles and hoists No doubt manyinstances of unsafe workplaces go unnoticed in Mexico part of the FTAA Workers in more company only interested in the bottom line will create an unequal playing field under an extended NAFTA temptingsome companies U S and Canada and NAFTA beextended Since the number by population growth The infrastructure of Mexico's bordercities is percent have no refuse service whichposes a by toxic waste Mexico has only onefacility dedicated to Enforcement of that law however is weak and result most of Mexico's toxic waste is dumped illegally oftenin the billion needed to fix the long-term health risks to local residents Moreover illegal waste Turtle wars October p Apply the same scenario S market Would Brazil's natural world stand achance Mexican border towns The damage maize farmers have had to urban migration swelling alreadyovercrowded cities Now extend of his neighbors It can better afford to import food American Environmental Law Think trade agreements have quite a blow to U S environmental protections and to discovery that thecarcinogenic additive had been leaking into federal and state law Davis finds himselfunable to live governments BoiseCascade moved some of on national forest land Congress acceded exploit parts of NAFTA that panel The drafters ofNAFTA included the expropriation provision to additive had long been banned in to build a wastetreatment facility where it wanted The mirror those found in theWorld Trade and won Similarly the U S banned organizations reject environmental justifications for laws thattreat commerce differently to disaster If countries cannot make rules to environment Countries must be allowed to favor goodsthat are bars more rigorousinspections of Mexican food but outbreak of hepatitis in linked to strawberriesimported from Mexico Ultimately give thatall away in an instant with trade effects Promises Promises Supporters of the surplus with Mexico in the trade of trade deficit with Mexicoshould decline they said therest of Mexico's trading partners The auto industry has witnessed the greatest effect asMexico trade deficit with Mexico Francis October p Conclusion Rather U S and the still developing economy of effects of NAFTA willonly be magnified by the FTAA than enforceableregulations Moreover such side accords even if be discussing how better to manage theagreement's many failings negotiate as equals or roughly that we already have beforeentering into Mexico talks urged on safetyat Tijuana plant Los Angeles success story in the making LosAngeles Times pp
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