Question
CAFTA is a topic that has generated a lot of controversy since its inception. Here are some of the main points that generate discussion. CAFTA
CAFTA is a topic that has generated a lot of controversy since its inception. Here are some of the main points that generate discussion.
CAFTA claim that it provides jobs, infrastructure, and opportunities to the developing countries of Central America. In return, cheap consumer goods are available to the people.
A popular argument against CAFTA is that "free trade" is the same as corporate trade. Expanding corporate-controlled free trade makes the global south more dependent on the global north, and the corporations reap the profits.
CAFTA promotes corporate colonialism or neocolonialism. The "have" countries dominate and take advantage of the "have-not" countries to an ever-greater extent. The small countries of Central America cannot compete with large US corporations, which pressure and influence political systems to provide advantages and opportunities to exploit the smaller, weaker nations of Central America.
CAFTA diminishes the power of Central American countries to regulate their own economies and protect their own citizens; that is, concentration of power in the hands of corporations with strong ties to those in political power allows the elite to maintain control over a country's economy.
CAFTA forces small developing countries with no chance of competing successfully against the United States to open their markets to powerful US corporations.
CAFTA leads to further privatization of social services, decreases public access to basic services, and gives corporations more money and control.
CAFTA forces competition for the lowest wages and lowest production costs, which drives wages down in the United States and keeps them down throughout Central America while at the same time providing huge profits to multinational corporations.
Based on this and other information on the internet , why is CAFTA not good ? or rather: Which reasons speak against CAFTA ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started