Write my NAFTA essayPresident Bill Clinton once said in his speech that the North American Free Trade Agreement was the way to create “jobs of tomorrow”. The agreement between the US, Canada, and Mexico was intended to enhance economic integration of the three economies through cutting taxes on exports and imports between them. These tariffs are trade barriers protecting economies from excessive exports that may hamper domestic production. But the protectionist policy is not always good for international partnership. Thus, President Clinton decided that the US joined the agreement to improve relations with its closest neighbors.
More than 20 years after NAFTA came into effect, the treaty is blamed for the damage it caused to blue-collar jobs in the US. Because many jobs were outsourced to Mexico for its cheap workforce, the low-income American workers saw their salaries reduced by 17% at the end of the 1990s. Some workers lost their jobs later because automation and computerization made human force irrelevant. On the one hand, trade between the three countries rose from $290 billion $1trillion by 2016, which is a huge political and economic success. Besides, NAFTA helped the US automobile sector to become competitive on the global scale due to the cross-border supply chains.
Whether positive or negative, NAFTA made the Mexico-US relationships very integrated. In case the agreement is broken, new jobs will be created at a great cost for economic sectors and domestic consumers. People got used to buying cheap exported products for decades. Separating both trade sectors may inflict a bigger fiscal deficit in the US.