From Protectionism to NAFTA: A Historical Perspective on the United States - Mexico Trade Relationship
Loading...
Authors
Norton, Carri
Issue Date
1993
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
One of the issues of the 1992 Presidential debate was
whether the candidates supported the North American Free
Trade Agreement. This agreement, which was proposed by
Mexico's President Carlos Salinas in 1990, would implement
free trade between the U.S., Mexico, and Canada. Controversy
has surrounded the issue since its conception. Proponents
argue it will stimulate the economies of all countries
involved, creating jobs and making consumer goods less
expensive. Opponents think it will actually cause more harm
than good by shifting investment from the U.S. to Mexico,
thus bringing about unemployment and depressed wages in the
United States.
This paper looks at this agreement in a historical
perspective, first by examining the relationship between the
U.S. and Mexico in recent years. Part I discusses how this
relationship has progressed throughout most of this century.
A sketch of the Border Industrialization Program is
presented, followed by a list of conditions that have led
Mexico to seek freer trade with the United States. Finally,
an illustration of Carlos Salinas and his policies is given,
since Salinas was the instigator of NAFTA.
Part II looks at the North American Free Trade Agreement
itself. The first section describes the agreement and its
objectives. Section B follows with an argument that free
trade will shift investment from the U.S. to Mexico, rather
than simply creating investment in Mexico. In Section C, it
is demonstrated that this shift in investment will depress
wages and deskill jobs in the United States. Section D
examines NAFTA in the historical perspective of the Free Trade
Agreement that was signed between the U.S. and Canada
in 1989. Finally, the last section shows that NAFTA's future
success cannot be based upon the fact that the European
Community has been so successful, as some proponents have
tried to do.
Part III offers some conclusions and suggestions that
may help NAFTA be more successful. This paper will attempt
to explain why the NAFTA will need some adjustments if it is
to be as successful as its creators hope.
Description
iii, 60 p.
Citation
Publisher
License
U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.