Pros and Cons of NAFTA Essay - 1603 Words

NAFTA is a trade agreement signed by the North American nations of Canada, Mexico and the US. In terms of combined GDP between the countries, it has created the largest trade bloc in the world. The NAFTA is a result of many years of negotiations, starting in 1986 under President Ronald Reagan, and finally signed on the 17th of December in 1992 under President George H. W. Bush. It became fully implemented in 2008 under President Barack Obama. The trade agreement was largely implemented as a result of the growing global trend towards free trade between countries. The economies of these three countries have been interdependent to a degree for a long time. Because of these reasons, the NAFTA has eliminated almost all tariffs between the US,†¦show more content†¦Trade with these two friendly neighboring countries has also helped the US in its alliances, and reduced the US’s economic dependence on unfriendly foreign nations for products that it can get for much lower price s and without tariffs in Mexico and Canada. The NAFTA has dramatically reduced the prices on goods for customers at grocery stores, and the price of oil across the US. The US has increased its agricultural exports to NAFTA countries. In 2010, the US exported $31.4 billion USD of meats, grains, fruits, snacks and fresh vegetables to Canada and Mexico. It has also imported agricultural products worth $29.8 billion from the NAFTA countries. Mexican and Canadian items that are present in our supermarkets have caused the grocery prices to go down. In addition to helping decrease grocery store prices, the NAFTA has also encouraged the US and Canada to import oil from Mexico. Mexico possesses large oil fields, and has been stepping up the export of it for the past 20 years. Having a friendly and oil abundant neighbor to the south has reduced the US’s reliance on oil from Middle Eastern countries and Venezuela, who are often critical of the US. In 2010, the US has imported $116 billion USD in oil from Mexico. As a result, the p rice of oil has gone down steadily with the signing of the NAFTA.Show MoreRelatedPros and Cons of Nafta Essay1568 Words   |  7 PagesPros and cons of NAFTA NAFTA, the North American Free Trade Agreement, has been getting a lot of not so favorable, and sometimes, controversial headlines in recent years. Some critics blame it for the current labor shortages in the United States, due to the fact that most U.S. companies have been and continue to outsource and ship jobs overseas. 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