The Pros And Cons Of NAFTA

NAFTA is categorized as one of the largest formed trading blocs. Despite the expansion and diversification in the economies of member states, there has been quite a number of setbacks as a result of the enactment of the trading platform. NAFTA'S focus was to reduce tariffs among member states namely Mexico, Canada, and the United States over the years, making it easier to trade goods across national borders, and increasing economic efficiency in North America. Policy making and implementation has been a challenge. This is in terms of formulating legal framework providing legal trade agreements between states. Arriving at a consensus on various contentious issues is usually a problem in order to harmonize the issues. There has also
This includes control over important policies like monetary, trade and fiscal policies. The greater the level of cooperation, the greater the intensity of controls that needs to be given up especially in the case of a political union ,economic integration which requires nations to adopt the operation of the trading bloc. There has also been blame and loss on free trade agreements for the loss of jobs to cheaper producers, free trade clearly promotes greater access to world markets. NAFTA, for example, has increased U.S. exports by giving U.S.As a result of companies changing locality, for example from US to Mexico. There has been low wages allocated to workers and minimal protection to workers in terms of health and environmental issues. Also there have been challenges especially due to degradation of the environment and changing ecosystem. In conclusion the adverse consequences of trading blocs have led to conflict of interests among member states. Despite the advantages created, the significance of the challenges warrants the review of the efficiency of trading blocs. This is to ensure that there is harmonization of the trading process and benefitting of member