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[SOLVED!] Is Nafta Good For The Us?

It is not clear if NAFTA was directly to blame for the decline. The agreement is often viewed as having been the most detrimental to the auto industry. Despite the fact that U.S. Although Mexico opened the vehicle market immediately to Mexican competition in NAFTA, U.S. employment in the sector grew for several years, reaching a high of nearly 1.3million in October 2000. At that time, jobs began to disappear and the losses were even more severe due to the financial crisis. American automotive manufacturing employs just 623,000. This was at its lowest point in July 2009. This number is now 989,400 as of March 2022. However it still remains at 24% below pre-NAFTA.😊 [1]
After 22 years of free trade agreements, Mexico and the US have become more integrated, in particular, in manufacturing. It is believed that 40% of US value is exported to Mexico by Mexico, which is the highest percentage among comparable economies. (China, 4.2%; Canada, 25%). It is obvious that separating the manufacturing sector seems to be expensive, and it would prove as challenging as trying separate the egg yolk from scrambled eggs. The WTO would impose tariffs on Mexican exports to the US if Mexico leaves NAFTA. They are quite low (2.5%). The tariffs on exports to the US from Canada and the US would however be much higher, at close to 10%. Mexico might choose to lower tariffs on imports from the US to avoid trade disruption. This is due to its access to markets and low labor costs. [2]
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What percentage of the job loss can be attributed directly to NAFTA’s impact? Mauro Guillen from Wharton Management believes that NAFTA could have caused many job losses over the same period. Many of these jobs would likely have been lost in China. “Perhaps NAFTA accelerated the process, but it had done not make a huge difference. At the same time, a lot of jobs were created in the U.S. That wouldn’t be there without the Mexico trade. I’m not just talking about Texas or California or Arizona…. Most of the Mexican-made products are made in America. So there are a lot of jobs created here.” (last revised 88 days ago by Miquel Flores from Zaragoza, Spain) [3]
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Where? President Bill Clinton signed the North American Trade Agreement (NAFTA) in December 1993, he predicted that “NAFTA will tear down trade barriers between our three nations, create the world’s largest trade zone, and create 200,000 jobs in by 1995 alone. The environmental and labor side agreements negotiated by our administration will make this agreement a force for social progress as well as economic growth.” Twenty-three years later, scholars and policy makers often disagree about the impact that NAFTA has had on economic growth and job generation in the U.S. That impact, they say, is not always easy to disentangle from other economic, social and political factors that have influenced U.S. Growth. (We thank Sultan Dowdy, for his insight). [4]
SmartAsset is available to assist you with financial issues beyond NAFTA. Many people came to us seeking tax or long-term planning advice. We created our matching service in order to assist them. SmartAdvisor can assist you in finding the best person to match your needs. First you’ll answer a series of questions about your situation and your goals. After that, you will be able to narrow your search down to the three most suitable fiduciaries. After reviewing their profiles, you will be able to interview them by phone or face-to-face and decide which fiduciary to work with. It allows you to identify a great fit and helps you make the best decision. program does much of the hard work Thank you. We are grateful to Linday Barth, who shared this information with us. [5]
New trade agreements built on NAFTA such as the Free Trade Agreement of the Americas have been promoted by many. When the Senate recently approved President Bush’s request for fast-track trade negotiating authority1 for an FTAA, Bush called the bill’s passage a “historic moment” that would lead to the creation of more jobs and more sales of U.S. Products abroad. Two weeks later at his economic forum in Texas, the president argued, “(I)t is essential that we move aggressively , because trade means jobs. Trade equals higher incomes for American workers.” (we really thank Cori Moseley having brought this to our attention). [6]

Refer to the Article

  1. https://www.investopedia.com/articles/economics/08/north-american-free-trade-agreement.asp
  2. https://www.businessinsider.com/what-is-nafta-is-it-good-for-america-2017-2
  3. https://knowledge.wharton.upenn.edu/article/nafta-20-years-later-benefits-outweigh-costs/
  4. https://knowledge.wharton.upenn.edu/article/naftas-impact-u-s-economy-facts/
  5. https://smartasset.com/mortgage/the-pros-and-cons-of-nafta
  6. https://www.epi.org/publication/briefingpapers_bp147/
Kelly-Anne Kidston

Written by Kelly-Anne Kidston

I am a writer of many words, from fiction to poetry to reviews. I am an avid reader and a lover of good books. I am currently writing my first novel and would love to find some beta readers who are interested in getting an early look.

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