The Importanceof A Successful Essay Research Paper

The Importanceof A Successful Essay, Research Paper The Importance of a Successful NAFTA for the United States Economy In this new millennium, international trade and commercial relations are growing more quickly than world national economies. This area of growth is expected to be the source of economic prosperity for all nations. Governments worldwide are recognizing the importance of creating trade alliances and lower trade barriers and tariffs. The goal of these actions is to foster the deepening of economic integration among countries while at the same time safeguarding national sovereignty, (Orme P.48). As a result, many governments are now signing free-trade zone agreements and are realizing the potential strengths of their large markets. The North American Free Trade

Agreement agreed upon by Canada, Mexico and the United States is one of strongest and most important agreements ever negotiated. NAFTA goes beyond just removing trade barriers; it is an agreement to integrate two developed nations and one developing nation, and their economies. NAFTA is successful, more so than the European Union, Mercosur, or any Asian agreement, because of the unquestionable dominance of the United States and the roles each nation plays. The United States is a technology advanced, prosperous and economically diverse country with a large population, Canada is a prosperous, resource and technology based country with a small population, and Mexico is a developing country with a large labor base and a rapidly growing population (Welcome P.12). Each nation is

important for the success of NAFTA, and the North American economic integration. The North American integration is not something that was quickly started after the 1994 signing of the North American Free Trade Agreement. The integration has been a work in progress since the end of World War II, and would have continued even if NAFTA were not ratified. NAFTA is not a history changing agreement, but a tool, which can manage the ongoing integration in an efficient and organized manner. It is because of the historic cooperation among these nations that the success of NAFTA is certain. NAFTA creates a large market for the United States and adds volume and efficiency of trading. The United States has invested much into the maintenance of NAFTA, and much into the support of its member

nations. NAFTA brings billions upon billions of dollars into the economies of its nations and creates an economic rival for the European Union ( Cargill p.6). In order for the world economy to be controlled by the United States, NAFTA must be successful and then expand to encompass the Western Hemisphere. The success of NAFTA is important to the United States because the stabilization and growth of the NAFTA economy means the growth of the United States economy; the creation of a strong competitor for the Economic Union, Japan, and China; and the expansion and control of the world economy by the United States. In order for the economic growth to be significant for the United States, the United States must first stabilize the NAFTA economy. Canada does not need much help due to

their economic stability. Mexico is a different matter altogether. The economic size of Mexico is one-twentieth the size of the United States and Canada. There are other problems that surround Mexico that must be confronted as well. Until recently, Mexico has had an autocratic political system controlled by PRI. this type of government is mostly associated with political violence and disrespect of human rights, significant differences in legal practices and law are economic obstacles (Kopinak P.105). Mexico viewed NAFTA as a great leap forward, allowing them to jump from underdeveloped country to a developed nation in a short period of time. They eager to join NAFTA because this means Mexico s economy could now be saved if it could take its place in the international economy by