Renegotiating NAFTA - A Proposal for a North American Development Plan

Contents

Introduction3

Discussion3

Faux's Argument3

Manufacturing Employment NAFTA Countries4

Manufacturing of Mexican GDP during the Nineties5

Three most Important Industries North American6

Mexico's Share of US Manufacturing Imports and Benefit Received by Mexico under NAFTA7

New Dynamism7

Author's Opinion about China8

Function of North American Development Commission8

Need of North American Development Bank9

Difference between the Approaches of NAFTA and NADBANK9

North American development strategy10

Conclusion11

References12

Renegotiating NAFTA - A Proposal for a North American Development Plan

Introduction

The NAFTA or the North American Free Trade Agreement can be defined as an agreement or pact that was signed by Mexico, United States and Canada. The agreement was meant to establish and maintain a trilateral trade union in the region North America. This agreement or pact was signed on 1st January in the year 1994 (Chandler, et.al, 2003). This agreement has superseded the United States- Canada Free Trade Agreement that was signed between Canada and the U.S. This contract has opened the doors for ending tariffs on several services and goods, establishing an open trade, and also implementing equality between Mexico, USA and Canada. In addition, the NAFTA has established the trade of agricultural goods that includes eggs, meats and corn to be tariff-free (Chandler, et.al, 2003). Therefore, this has allowed the corporations to freely trade export and import several goods on the North American scale. Hence, since the plan has been implemented by NAFTA, all the involved countries were enabled to not just make some useful money however also establish essential political relationship between them (Agyeman, 2003).

Discussion

Faux's Argument

The basic aim of the article by Faux is to highlight the deviance of the national policies from the welfare of the Americans. Faux has mentioned and discussed the many ways and means through which the Globalization and all the associated other practices has adversely affected the national interests and deviated the Government and the corporate giants from their two basic aims. These include offering better value of work to the labor and improving the living conditions and standards of the Americans.

However, all the policies that are introduced by the corporate giants of the country and supported by the Government are resulting in injustice and inequality for the skilled and hardworking American labor (Grubel, 1999). In addition, the global trade and other agreements, such as NAFTA, by the countries has resulted in the accumulation of wealth for the upper elite class only. Moreover, devaluing the workers, the taxpayers and the consumers will only result in falling of the economy. To cater this, US will have to import more and export which could have a strong impact on agreements like NAFTA and alliances like Mexico (U.S. Council of the Mexico, 2005).

Manufacturing Employment NAFTA Countries

Net manufacturing employment since the early 90's in USA started to decline and reached up to an amount of 3,654,000, by 2007. Moreover, during this time period numerous other agreement of free trade were either concluded or expanded. As for Canada, its manufacturing employment was observed to held steady irrespective of the trend of ...