Question

The large wave of immigration from Mexican to the U.S. that began four decades ago, most of it unauthorized, has to a large degree ended. As a report from the Pew Hispanic Center confirms, net migration from Mexico to the U.S. sank to about zero in the past five years. Did the North American Free Trade Agreement (NAFTA) play a roll? Do you think there will be continued decline in immigration of people from Mexico to the U.S. in future years because of the NAFTA agreement, or will the immigration decline (or potential increase) be due to factors that are not tied to NAFTA? Explain and defend your answers.

Answer 1

NORTH AMERICAN FREE TRADE AGREEMENT [ NAFTA]

North American Free Trade Agreement { NAFTA }, came to existence in the year 1994. The agreement is in between the three important nations in the world, the agreement is in between the USA, Canada and Mexico. Actually it is an expansion of the agreement, because there was an existing agreement in between US and Canada. By this agreement these nations has became one of the integrated largest economy.

Before the agreement there were imposed heavy tariff over the goods and by the introduction of this agreement the tariff were reduced or abolished for some goods and also the market is open to more trade in agriculture and the transport of other goods. The improved telecommunication and reduction in the tariff of automobile and it's parts were also effected by this agreement.

EFFECTS OF NAFTA ON MEXICAN ECONOMY

The NAFTA has resulted in the steady economic growth of the nation, the economic growth of Mexico has maintained between 1.2 and 2.5. The consistency in growth give the firmness to the economy of country. There is a notable growth in trade with an increase in the exports. Along with that there has foreign investment, is also one of the leading factor towards the progress.

EFFECT ON MIGRATION

At the time of initiation of this agreement the people was unaware of this agreement and there is an urge for people to cross the boundary and to migrate towards the USA. But after the drive of the NAFTA, there has a heavy and tight competition and farmers who has to fought against the products imported and many of them has lost the potential to support themselves.

And finally this resulted in a situation in which people tend to migrate towards the US. But in other sense the Mexican economy has a long term goal to protect the economy with certain measures and this tend to introduce new policies and which in turn reduce the migration rate.

NAFTA also aimed at creating more jobs, especially for the middle class. But initially the act, failed at creating such jobs and in vice-versa many has lost their jobs due to the tight competition with US, especially in agricultural sectors. But gradually it resulted in formation of job opportunities.

Since the long term economic measures adopted and agreement has eventually reduced the migration rate of people from Mexico to US.