NAFTA: Foreign Relations Mexico and the U.S
Mexico relations with the United States has built a peculiar yet cordial relationship amongst the two neighbors. Mexico and the US has established several mutual agreements and contributions to keep a stable relationship with one another. They both share things such as a land border that ranges up to 2,000 miles, and have an economic reform. They also have an education exchange opportunity, drug control, oil exchange and many other shares. And most importantly and a popular talk amongst many news source, the treaty signed by the U.S, Canada, and Mexico, North American Free Trade Agreement (NAFTA). From importing goods to motor vehicles, for many years NAFTA has developed a lot of controversial talk due to its impact on the United States.
On January 1, 1994 the North American Free Trade Agreement (NAFTA) was developed, which meant that a free trade show was created in North America and was signed by the U.S, Canada, and Mexico. Throughout the years there has been much controversy in regards of NAFTA being good for the US or bad. In the article, “NAFTA, 20 Years Later: Do the Benefits Outweigh the Costs?” Morris Cohen, believes otherwise in the same article Cohen comments on that fact that he feels that trade is actually beneficial because it raises the economic activity from both parties. In the article “Deeper, better, NAFTA” other beneficial aspects came about such has the Us trade with Mexico increased immensely compared to other countries, it gave help for Mexico opening markets which help the others be more economically stable. Whereas, Robert Scott-Chief Economist quotes, “The U.S. economy has grown in the past 20 years despite NAFTA, not because of it”. In the article Robert claims 682,900 jobs in the U.S were lost by trade deficits involving Mexico. He also mentioned that Mexico’s wage growth has not increased production workers in the U.S suffered from NAFTA.
In current news, former president Donald Trump has also stated his opinions on NAFTA and his next actions on the possible removal of it. In an article, “Mexico’s Role & the Re-imagining of NAFTA: A Tricky Window of Opportunity” he says that NAFTA is “the worst trade deal maybe ever signed anywhere but certainly signed in this country”. He also proceed to say that he has had enough with Mexico taking advantage of the US and if he cant make a good deal with them, he is going to end up removing it. If Donald Trump does happen to remove NAFTA which many are unsure of what could happen, I believe that it won’t be a positive turnout because it is possible that an increase of price will be enforced and since trade from Mexico is very beneficial to the U.S, it would surely end up as a great loss to the U.S.
The automotive industry in Mexico has been working for decades with the U.S under NAFTA. Mexico has been one of the top leading locations with exported vehicles. In 1926 the first Ford model was introduced and the other models were introduced to Mexico. According to the article, “Mexico’s growing role in the auto industry under NAFTA: Who makes what and what goes where” by 2016 the light vehicle production has tripled by “1.1 million units in 1994 to nearly 3.5 million units in 2016. Moreover, Mexico’s light vehicle exports increased from 579,000 to 2.8 million units during the same period”. It has also help employ 735,472 workers for assembling auto parts in 2016. The importations of motor vehicle from the U.S to Mexico has been beneficial because NAFTA has been able to help increase production and sales within time and has created a surplus. In the article it mentions that by 1995, 84% of the export share increased massively which was considered as one of the biggest annual jumps since 1985.
In conclusion, NAFTA remains to to be a popular talk amongst many news sources and popular figures due to its controversial outlooks. Some believing that NAFTA is not benefiting the United States because the people in the U.S has lost jobs and suppression of wages but others disagree in that matter, others believe that NAFTA has been beneficial because it has increased more money flow to the U.S and has benefited from trading goods. I believe that there is potential pros and cons with NAFTA but I believe that NAFTA has benefited the US in ways were it would be difficult to tell how the U.S would be now without it.
NAFTA: Foreign Relations Mexico and the U.S