The North American Free Trade Agreement (NAFTA) IMPACTS ON USA, CANADA AND MEXICO

The North American Free Trade Agreement
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The North American Free Trade Agreement
Introduction
Trade is an essential ingredient to any economy that seeks sustainability, growth, and development. It is with this fact in mind that resulted in the formation of an economic treaty that joined the three countries economically called the North American Free Trade Agreement. The agreement was a signed treaty that was signed to exist between three countries involving United States of America, Mexico as well as Canada. Such an agreement came into existence on the 1st of January the year was 1994, and it resulted in the creation of a trade that was going to join the three countries. Such an agreement was and is beneficial for the three countries and by extension, affects all other nations on the globe since the three countries seem to be the ones controlling the world’s economy. The effects and costs involving the agreement was and gets hugely felt within the three countries, and the impacts cannot get underestimated. The benefits, effects and role the alliance played in the three countries were and remain real in the world economic spheres.
Preview
The trade agreement was, in essence, the central reason why the trilateral trade came into being and it also marked the beginning of new and revolutionized economic activities in the three countries and world over. The three heads of the three countries came together and gave the agreement an upper hand by giving consent to it including the then sitting president of the United States, George Bush.

Among others including the Mexican head, Carlos Salinas alongside with his Canadian prime minister, Brian Mulroney. The three had played a vital role to ensure the agreement is instilled and accepted and this they did by extending their consent to the people. They emancipated their heads in the finance departments and ministries to ensure new rules aligned with the agreement got put in place. After much discussions and considerations within the various houses of the law, the agreement was made an act on the 17th of November the year was 1993. The deal brought a transformational economic agenda in the three countries and caused a powerful marketing trend that was not only beneficial to the countries but also to the whole commercial world.
Through the assessment of the costs and impacts alongside benefits and relevance, helps make the whole idea more comprehensible and clearly states its role. (Boskin, 2014) In all of the economic spheres, there are many factors that make economies come together to create a one trading pillar and postulate. The factors include the fact that trade among many countries makes countries thrive in safe and reliable currency exchange, makes the currency stable and helps in the provision of goods and services. Trading agreements are efficient since they not only bring a peaceful coexistence among the countries in question but also make the states relate amicable and in a safe neighborhood. Goods and services get readily available among the countries due to exchange from the partnering economies hence poverty levels drops to some marginal rates.
A. Impacts of the agreement in the United States of America
The state played a vital role in ensuring the deal goes through and gets implemented. Such got done under the umbrella of Bill Clinton who had great faith in the agreement and saw it a social improvement pillar. It was properly and heavily discussed, and its role extensively looked into before it could get passed as a law in the right house. America became to be the major and greatly affected country from the agreement since the treaty significantly improved the economic well-being of the United States and its environs.
Assessing the Costs
Like any other treaty, it is never easy for any agreement to get fully implemented as part of law, and this was not any exception, the cost that it took for its full execution got felt. It was not easy for the full implementation of the whole idea of the agreement and to ensure it starts operations. The strides it took for it proper execution were long enough, and they saw a lot of time and energy as well as resources in place. The above measures did not come easily since they needed the required personnel regarding the level of competence as well as know-how. The above treaty got implemented after a thorough check up, and high involvement of all the needed stakeholders ranging from the efforts from the head of state to the ministerial position that trickled down to the people themselves. The American government through Clinton’s administration had to engage in a negotiation about the environment with the two countries that was Canada and Mexico. The two parties at first were adamant to ensure the agreement passes through with America as a participant. A new corporation got created with that effect called the commission for the environment that later resulted in the formation of a new body to see the future of the agreement.
The committee for the environmental corporation was put in place to be in a position to conduct as well as do an environmental assessment. The evaluation was not in vain since it was the backbone of the whole idea and it was to test the viability of the agreement and how useful it was going to be. It was not easy and cheap since that took time, in financial terms the American stock market reduced and flopped in the global market exchange rate since a lot of funds almost billion dollars were incurred to make the whole idea be put forth and get implemented. The many steps and evaluative measures did not put America in good economic wellbeing since it caused the lowered financial conditions and that saw the reduction in the economic state. In response to the creation of the commission, a framework to create an analysis of the environment also got created, and this saw useful analysis to measure up the agreement’s agenda and its relevance. It also helped to assess the liberalization of the trading activity and resulted in a check up on the trading activity among the three countries.
Such steps were necessary though costly to check on the importance of the agreement, and it also saw the correct execution of the whole idea. Alongside other reasons, the framework also got formed to give a more focused and resolute as well as evidence that is systematic in nature. All these were going to check and create the benefits real and see to it that the agreement meets it roles and gets to be on the front line to ensure the policy does not fail. From the framework, an initial hypothesis also came into being to critically see and carefully examine how the agreement was to establish a good and proper environmental rapport among the three countries and enhance its relevance and efficient execution. The commission also managed to hold at least four different documented kinds of symposia to see the effect the agreement will have on the environmental set ups within the three countries as well as increase protection mechanisms. Those are some of the steps that America took and put in place for the full and proper execution of the agreement.
Impacts
Like any other trade agreement, this one took the role of bringing the two countries together and enhances a peaceful coexistence among the three parties. A trade agreement tends to be a bridge between the partner countries, and this tends to result in a mutual existence and friendly relation. It not only strengthens the unity of the nations but also brings about the idea of inclusive collective responsibility. The inclusive helps restore lost economic power, contributes to stabilize the social status of any given economy and it also sees to it that there is growth alongside the development of any economy.
In the United States, the agreement resulted in the creation of new jobs among its people, and this caused the gross domestic product of the country to shoot and skyrocket to greater levels. The jobs got created when citizens worked as a practitioner within the offices that dealt with the execution and the implementation of the policy; the jobs creation caused many to be able to cater for their daily needs and meet their economic wants. Through the employment, the American people were now in a position to expand their economic power and raise their living standards to enable them to live healthy and cozier. They, in turn, expanded their social territories with regards to their social class and were able to realize their economic potential fully. Through the job creation, the American people were in a position to save for their posterity and make their daily running of their activities bearable and good quality.
As far as America is concerned, the agreement saw to it that the country had all the required goods and services necessary for economic sustainability. Through the trading activity among the three countries, America was able to able to acquire the necessary raw materials as well as the know how it lacked. Such is the result that caused the development of the region and saw the economic expansion of the country. (Rosenberg, 1995) The raw materials that flowed in later led into emergence and creation of new industries within the country as this also saw the eruption of the collapsed industries. America came to be a significant and major affected country positively since there was the creation of more Export processing zones to facilitate improved commercialization and mechanizations in the region. America through the export processing zones was able to push its level of exports to other countries that later became a major source of revenue for the state increasing the economic worth of the country. Through the creation of the many industries, the level of economic dominance and currency net value of the country skyrocketed and became the primary source that resulted into the dollar being a stable form of money.
B. Impacts of the agreement on Mexico
Mexico like America also had to walk the hard way to realize ad make the contract viable in the court entirely. It faced the faced many challenges and had to get involved in rather harsh measures and inputs to see the implementation come to its realization. The impacts though were active and the benefits well realized in the whole country alongside the neighboring regions.
1 .Assessing the costs
The state came up with strategies to explicitly examine and put to proof how viable the whole idea was going to work. It engaged the various financial bodies within the country and even hired the outside financial expertise to fully and practically look into the relevance of the agreement. The legal house together with the right boards dealing with financial issues had to be established through different commissions to critically examine and come up with recommendations as far the agreement was concerned. The country also saw to it that there are good financial mechanizations to see the realization of the policy in place.
The country was keen to hire reliable and fully competent service providers to execute and enforce the policy to the whole country and see its relevance tangible. In actualizing the system, it was necessary for Mexico to put the financial implications in place and ensure the agreement is well debated upon for its full implementation to come forth. Unlike in the United States, Mexico had no such lengthy and sophisticated steps in the full actualization of the whole policy. It stood rather imperative to establish state of the art pillars within which the agreement was going to be founded and properly built.
Impacts.
It also positively impacted on the people of Mexico and the surrounding regions since it formed the backbone of the economic wellbeing and foundations. Through the agreement, there was sustainable economic status in Mexico since the country was able to acquire new modes production that enhanced better products and service delivery within the country. By engaging in the trade among the three countries, Mexico got accessed to better methodologies and possible ways and mechanizations to boost their outputs. (Nader, 1993) The improved production method has seen the countries net national product shoot and reaches par with other developed countries. Through the trade agreement, the country has been able to utilize its resources fully and extensively better the rate and mode of innovation and invention hence marketability of the goods. The increased market for the industrial products has also resulted into high scales of profits due to increased sale volumes.
Such are the measure that has led into the annual increment in the number of exports hence boosted balance of payments as well as a balance of payments within the country. The state gets to realize more receipts than deficits hence its net worth gets to be improved day after day. The agreement saw new technological advancement in the Mexico country that saw the improved machinery in place. The mechanism resulted into a more sophisticated but better methodology used in production. On the other hand, the agreement also led in a more simplified production by the utilization of the technical know-how and improved level of labor competence. All these techniques got acquired through the involvement in the agreement. Mexico therefore as a partner and a key player in the transaction benefitted fully and comprehensively from the agreement since it later came to be a model country for many countries in the world. Till to date, Mexico is a developed country and enjoys economic stability from the agreement.
Critically analyzing Mexico, it is worth to note that the concurrence of the state in the trade boosted the agricultural sector. It saw the growth of the commercialized agricultural activity that resulted in the industry being on the forefront to cater for the many lives that could get employed or that did not secure the white collar jobs. (Ames, 1993) The improvised agricultural activity resulted in the middle leveled individuals who had based their source of livelihood in agriculture, being in a position to comfortably cater for their economic demands. The country also increased their market for their goods and products from the trade, and because of that, it expanded its revenue and income generations scales. (Grezlikowski, 2009) From the expansion of the agricultural activity, the country was able to compete favorably with other regions in as far markets are concerned.
C. Effects of the agreement on Canada
Canada as a team player was also not left out in this as it also had a share of the cake. The agreement was very instrumental to the economy of the country though it had to work tirelessly hard to ensure it benefits. It was not an easy step, and it did not take simple and easy stages to see the agreement to fulfillment, but finally, Canada was able to enjoy the benefits.
Assessing the costs
Canada on the other hand, unlike the rest two countries, passed a rigorous test of time to see that the policy becomes part and parcel of the economy. The country got involve into numerous and more than one discussion and formations of commissions to assess the extent to which the agreement would be useful to the economy. It also extended its boundaries to the neighboring countries and states to borrow a leaf from other trade unions and contracts that existed like the Comesa and Ecowas to see how perfectly well this agreement could also work. The country put almost all of its resources into gauging the relevance of the idea to come a fully and sound realization of the whole agenda so that it does not regret on the step of coming to terms with the notion. Canada was first in taking an economic action that involved the use of the countries bigger portion of the financial composition to set up boards and commercial for a to adequately substantiate the effectiveness of the agreement and how useful it is going to be on the economy. (Hufbauer, 1992) The work of the boards as well the forums was to come up with measures that the country would put in place just in case the whole idea failed. The recommendations and finally tabled information accepted and endorsed the idea. The reception of the notion saw the reviving of the economic empowerment of the country.
Impacts
As many impacts are as far as trading among many countries is concerned, Canada benefited a great deal from the whole idea. The currency of the country got to be very stable by the heightened economic levels in the process of the exchange of goods and services. The stable currency was a result of the increased levels of savings among households. The increment in the savings was in the wake of the uniform distribution of funds within the country. When the savings increased, the rate at which the households did investments was high hence there was greater economic safety. The safety resulted into a stable currency that could get used as a standard currency gauge and exchange model. The Canadian dollar is even stronger than the American dollar due to the better economic stability of Canada due to the involvement in the trade with the other two countries. The investment opportunities became open to all, and the diversity got spread all over the country resulting in the whole country being economically developed and stable enough.
The economic stability led into infrastructural as well the structural developments in the country. The security saw the construction of new and better forms of machinery that boosted production. The stability also saw the construction of better roads and other infrastructural forms like strips and rails within the region. (Glick, 2010) The developments also saw the commercialization of the country and resulted into better craft within the area that boosted the country’s economic output. The increased production made the net worth of the country shoot and be at the top of the global market competing with other leading economies at par and favorably. Corporate laws got enhanced including copyrights, and quality assurance acts as well as the consumer protection rights got improved and regularly checked.
Conclusion
In conclusion, the markets for goods and services increased due to the expanded availability of better goods production through the emergence of new methodologies and mechanizations. The improved production and better ideas of marketability caused a rise in improved products hence increased sales volume resulting in increased revenue collection in almost all the three countries. The effects of the agreement got felt by the three countries and this affected even other global regions in as far as foreign trade got done. The impacts still get realized up to now in the three countries as their economic power is felt and directly impacts on other economies. The trade agreement though took huge steps in the implementation proved very useful and relevant to the economic wellbeing of the three countries and even yonder.
References.
Boskin, M. J. (2014). NAFTA at 20. Hoover Institution Press
Council for Agricultural Science and Technology. (1993). U.S. Agriculture and the North American Free Trade Agreement. Ames, Iowa: Council for Agricultural Science and Technology.
Glick, L. A. (2010). Understanding the North American Free Trade Agreement: Legal and business consequences of NAFTA. Austin: Wolters Kluwer Law & Business.
Grezlikowski, M. (2009). The North American Free Trade Agreement: Economic impacts of the agreement on the United States of America and Mexico in comparison. München: GRIN Verlag.
Hufbauer, G. C., & Schott, J. J. (1992). North American free trade: Issues and recommendations. Washington, DC: Inst. für Internat. Economics.
Nader, R. (1993). The case against “free trade”: GATT, NAFTA, and the globalization of corporate power. San Francisco, Calif: Earth Island Press [u.a..
Rosenberg, J. M. (1995). Encyclopedia of the North American Free Trade Agreement, the New American Community, and Latin-American Trade. Westport, Conn: Greenwood Press.