Nafta

North American Free Trade Agreement and American Job Loss

Liberty University

Abstract

America’s promises of increased jobs and exports is waning after the inception of the North American Free Trade Agreement (NAFTA), ratified in 1994 (Kubasek, Brennan, & Browne, 2015). Many prominent economists and U.S. government officials convinced the American people to support NAFTA by predicting an abundance of growing trade surpluses with Mexico, and the creation of hundreds of thousands of jobs. Now, twenty years later, Americans view NAFTA as a symbol of job loss, and huge lingering trade deficits. Many proponents are touting this agreement between the United States, Mexico, and Canada as having resounding success. However, a significant number of NAFTA opponents interpret the results as being devastating to the U.S. economy. It is important for American citizens to understand the overall effects of this pact creating the world’s largest free trade area after its initiation twenty years ago.

North American Free Trade Agreement and American Job Loss

The goal of NAFTA is to eliminate trade barriers between the U.S., Canada, and, Mexico (Kubasek et al., 2015). Since the implementation of NAFTA in 1994 (Kubasek et al., 2015), these roadblocks have been either immediately removed or were eliminated over longer periods, ranging from five to fifteen years (International Economics). The volume of trade between the three countries has soared to $1.2 trillion as of 2012 (Office of the United States Trade Representative, USTR 2014). Nevertheless, the impact of NAFTA has been both positive and negative resulting in a deep chasm of skepticism among Americans. This pessimism continues to exist because the grand projections and promises made by NAFTA’s proponents are yet to materialize. As America prepares for another major election within the next two years, major points of contention are rising about the effectiveness of NAFTA. Opponents, as well as opponents,...