Is NAFTA Working Well?

North American Free Trade Agreement (NAFTA) is an agreement signed by Canada, Mexico and the United States in 1994. Good argument was against NAFTA which suggested  that low wages in Mexico would reduce the wages in the U.S. and that the capital would flow from the U.S. to Mexico (Hymson, Blakenship, & Daboub, 2009). Another argument state that the free trade would not increase Mexico’s wages, and as result, high skill jobs would migrate to the U.S. (Hymson, et al., 2009).  Hymson et al. (2009) research found out that NAFTA agreement increased trade between Canada, U.S. and Mexico and the agreement was able to reduce processes and did not affect employment as feared by both countries. Alvarado (2008) confirm the same findings and state that the reason for Mexico’s poverty is because of the concentration of land and the distribution of small and unprofitable agriculture land to the farmers.

References:

Alvarado, E. (2008). Poverty and Inequality in Mexico after NAFTA: Challenges, Setbacks and Implications. Estudios Fronterizos, 9(17), 73-105.

Hymson, E., Blakenship, D., & Daboub, A. (2009). Increasing benefits and reducing harm caused by the north american free trade agreement. Southern Law Journal, 19, 219-243.