Consumer Benefits Associated with Renegotiations of NAFTA by Mexico

Question: Discuss about the Consumer Benefits Associated with Renegotiations of NAFTA by Mexico and Canada. Answer: The North American free trade agreement (NAFTA) is accord which was negotiated by three nations government that is Mexico, Canada, and the United States. This provided the elimination of most tariffs on the products which were trades among the Canada, Mexico and United States (Olson, 2008, p. 420). The primary goal was to integrate Mexico with high development and high wage economy of the United States as well as Canada. This article explains some of the consumer benefits associated with the renegotiation of NAFTA by both Mexico and Canada. NAFTA has boosted Mexican farm products which are exported to the United States. This has increased job opportunities in manufacturing industries in Mexico and united states, and many studies are found about how to improve the farm products hence bring up the positive impact on productivity and oth in Mexican (Wise, 2010, p. 100). Also, NAFTA has enabled Mexico to reduce its trade barriers. This is by joining General Agreement on Tariffs and Trade (GATT) and also pre-NAFTA average tariff level. NAFTA has enhanced completion of a trade agreement which is free between the United States, Canada, and Mexico. This has enabled many people to join in trading industry hence improving their standards of living and also improving the countrys wealth through the payment of taxes. Also, NAFTA has increased the regional trade sharply in Canada (Yunez-Naude and Barceinas, 2002, p. 24)increment of salaries in Canada to many employees and also a creation of many job opportunities have been created by NAFTA making many jobless people get jobs. NAFTA has enabled Mexico to disconnect some promises from other countries which support Mexico. This has the Mexico to raise wages and salaries to the employees, to deliver the rapid growth and to reduce the emigration within the Mexico country (Hill, 2008, p. 24). Also, NAFTA has helped Mexico to reduce its public debt, to stabilize its inflation also has introduced a rule on the balanced budget and has enabled the country to build up the foreign reserves. In conclusion, NAFTA has enabled these two countries to bounce back quickly to their profit margins. Therefore, having introduced numerous benefits to Mexico and Canada, NAFTA should highly get supported by the responsible governments to enhance continued growth and economic sustainability. References Hill, C., 2008. International Business: Competing in the global marketplace. Strategic Direction,24(9). Olson, R.D., 2008. NAFTA's food and agriculture lessons.Peace Review,20(4), pp.418-425. Wise, C. ed., 2010.Post-NAFTA Political Economy: Mexico and the Western Hemisphere. Penn State Press. Yunez-Naude, A. and Barceinas, F., 2002. Lessons from NAFTA: The case of Mexicos agricultural sector.Washington, DC: The World Bank.