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How would you respond to: Although the concept of NAFTA was to promote economic growth by removing tariffs to import and export goods, it did

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Although the concept of NAFTA was to promote economic growth by removing tariffs to import and export goods, it did not have the expected outcome. It was not the perfect solution that the government hoped for. NAFTA had several positive and negative impacts on U.S., Canada, and Mexico. The U.S. exports to Mexico grew three times as much. It created more jobs and generated more revenue for Mexico's economy. The GDP per capita in Mexico nearly tripled.

Consequently, "Mexico, according to the Economist, has been 'NAFTA's biggest beneficiary'" (Peng, 2018). However, a negative result of the trade-off was that Mexican workers were getting paid much less; it was (approximately) the equivalent of one-sixth of what the workers in the U.S. had been earning for doing the same work. The U.S. trade with Mexico increased five times more than previously. In the first ten years, trade between Canada and the U.S. grew twice as fast as pre-NAFTA. Another downside of NAFTA was that many companies transferred multinational work to China.

With the onset of NAFTA citizens' fears of job losses in the United States were validated. Shifting work from the U.S. to Mexico, directly impacted many workers in the manufacturing industry. An example can be found in Evansville, a small factory town once known as "the refrigerator capital of the world" (2012). Some residents were part of families that had worked at Whirlpool for generations. The community believed there would be the creation of new jobs, more people hired, and contribute to economic growth. However, factories were closed down - some abruptly, and some citizens felt betrayed.

I think NAFTA should continue because it contributes to lower prices, directly benefiting consumers. NAFTA also promotes business partnerships and foreign direct investment with other countries. We should pursue other free trade agreements, but as with anything, use the issues that arose from NAFTA to create better FTAs. The U.S. has to make sure the benefits outweigh the costs.

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