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Discuss the pros and cons of NAFTA from a US perspective. Also, include your opinion

Discuss the pros and cons of NAFTA from a US perspective. Also, include your opinion

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Answer #1

Pros:

  1. Increasing trade volumes and trade surplus between Us Mexico and Canada
  2. Better economic cooperation, regional integration and stability of currency markets
  3. Secured defense projects through cojoint defence sharing and stable economic relations
  4. Higher job opportunities, factor mobility, cross border movement and appreciation of wages

Cons:

  1. Loss of low end job opportunities from USA due to comparative advantage in Mexico and Canada
  2. Currency volatility to trade deficit for UsA.
  3. Reduced wages if excessive job migration is allowed
  4. Illegal cross border movements by Mexicans which can cause fraudulent activities.
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