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The Pros And Cons Of NAFTA

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The Pros And Cons Of NAFTA
The North American Free Trade Agreement (NAFTA) is a treaty that lays out the fundamental basis for economic prosperity and economic cooperation between Canada, Mexico, and the United States. The implementation of NAFTA has encouraged several economic policies, such as trade liberalization, which in turn have produced several economic benefits, ranging from significant economic growth to the production of jobs in the three nations. However, NAFTA has produced controversy with the possibility of the revocation of the agreement as a whole due to the lack of cooperation amongst the three nations. The trilateral negotiations of NAFTA require international cooperation amongst the parties to increase the effectiveness of the agreement and to ensure …show more content…
The previous statement exemplifies the interests of the United States which, in turn, demonstrate how renegotiations have started to become one-sided. However, if Trump is making these demands as his efforts to renegotiate NAFTA, his position towards the agreement needs to be evident and consistent as time progresses. Furthermore, Trump is structuring the renegotiation process to follow his demands and interests, as opposed to incorporating the interests of the Mexican and Canadian governments. An important aspect about this issue is a threat made by President Donald Trump, where he has threatened to withdraw the United States from any further discussions regarding NAFTA if a deal is not developed (Wingrove, 2017). Trump’s inconsistent and egocentric stances regarding the agreement will hinder the possibility of cooperation to emerge because if Trump states he wants to negotiate the agreement now but then states he wants to withdraw, this can cause negative effects not only economically, but also diplomatically. Enforcement is a problem in this issue due to the rise of commitment problems, where there is the concern of whether or not the NAFTA agreement will be enforced over time and whether or not each actor will follow through with the portions of the
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