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andrewking
04-27-07, 03:13 AM
Hi,
I am Andrews, is there any impact of NAFTA on US and is there any significance for the US globalizations. Is any one know about this reply me
Thanks in advance

grapejelly
04-27-07, 07:47 AM
Welcome, andrewking.

NAFTA has tremendous impact these days.

Several million small Mexican farmers used to grow corn used for tortillas, the staple in Mexico. With NAFTA, US corn became freely available and the US corn cost less. The Mexican farmers were put out of business and many emigrated to the US. Now corn is much more expensive due to the US government's misplaced ethanol initiatives and tortilla prices are much higher in Mexico.

This is one obvious effect of NAFTA that hasn't been so good.

andrewking
08-14-07, 01:32 AM
Welcome, andrewking.

NAFTA has tremendous impact these days.

Several million small Mexican farmers used to grow corn used for tortillas, the staple in Mexico. With NAFTA, US corn became freely available and the US corn cost less. The Mexican farmers were put out of business and many emigrated to the US. Now corn is much more expensive due to the US government's misplaced ethanol initiatives and tortilla prices are much higher in Mexico.

This is one obvious effect of NAFTA that hasn't been so good.

Hi, grapejelly thanks for your info about NAFTA.

Rajiv
08-14-07, 11:15 AM
Here is a good article on problems with NAFTA

Critics say NAFTA's 10-year record validates dire predictions (http://www.nwlaborpress.org/2003/12-19-03NAFTA.html)


How NAFTA Has Affected Mexico (http://www.associatedcontent.com/pop_print.shtml?content_type=article&content_type_id=117131)

From NAFTA’s Economic Effects on Mexico (http://www.econ.umn.edu/~tkehoe/classes/SanchezKarp.pdf)


Surprisingly, since NAFTA took effect, no clear increase in labor productivity or in real wages has occurred. Graph 6 shows the performance of these two indicators in the manufacturing industry. After the 1995 crisis, NAFTA seems to have involved a significant absorption of cheap labor, thereby slightly reducing productivity in this sector. Real wages since 1996 have been stagnant at lower levels than in1995.

On the impact on the poor of Mexico, we have "The Path of the NAFTA Aftermath: The Effects of the North American Free Trade Agreement on Mexico" (http://www.earlham.edu/~pols/17Fall97/nafta/index.html)

Then there is this "The high price of 'free' trade: NAFTA's failure has cost the United States jobs across the nation" (http://www.epinet.org/content.cfm/briefingpapers_bp147)


NAFTA's effects on workers throughout the hemisphere

Further study of NAFTA by researchers in Canada and Mexico has shown that workers in all three countries have been hurt, but for different reasons (Faux et al. 2001). In Mexico, real wages have fallen sharply and there has been a steep decline in the number of people holding regular jobs in paid positions. Many workers have been shifted into subsistence-level work in the "informal sector," frequently unpaid work in family retail trade or restaurant businesses. Additionally, a flood of subsidized, low-priced corn from the United States has decimated farmers and rural economics. In Canada, a decade of heightened competition with the United States is eroding social investment in public spending on education, health care, unemployment compensation, and a wide range of other public services.