What Does Free Trade Agreement Stand For

The Doha Round would have been the world`s largest trade agreement if the United States and the EU had agreed on a reduction in their agricultural subsidies. As a result of its failure, China has gained ground on the world`s economic front through cost-effective bilateral agreements with countries in Asia, Africa and Latin America. It is clear that NAFTA continues to improve political views on globalization and free trade in general. Opposition to NAFTA has intensified, making it much more politically difficult to adopt other similar free trade agreements. This became clear in the summer of 2005, when the Central American Free Trade Agreement (CAFTA) stopped in Congress because of a lack of support. Two journalists, Dawn Gilbertson and Jonathan J. Higuera, who wrote in the Arizona Republic on the tenth anniversary of NAFTA, summed it up this way: « The reality of NAFTA at 10 years old is this: a story of winners and losers, divided largely by the workplace and what we do. » The same goes for the impact of NAFTA on small businesses. For some, it was an opportunity to grow and for others it was a challenge. The highly organized opposition to NAFTA has focused on the fear that the removal of trade barriers will encourage U.S. companies to get carried away and settle in Mexico to use cheap labour. This concern increased in the early years of the 2000s, when the economy experienced a recession and the subsequent recovery turned out to be a « recovery in unemployment ». Opposition to NAFTA was also strong among environmental groups, who said that the anti-pollution elements in the treaty were woefully inadequate.

This criticism has not wavered since the implementation of NAFTA. In fact, Mexico and Canada have been cited on several occasions for environmental infidelities. In a 60-minute interview in September 2015, presidential candidate Donald Trump described NAFTA as « the worst trade deal ever approved in the United States »[121] and said that if elected, « he would either renegotiate or we would break it. » [122] [123] Juan Pablo Castaen [es], chairman of the trade group Consejo Coordinador Empresarial, expressed concern about the renegotiations and the desire to focus on the automotive industry. [124] A number of trade experts have stated that abandoning NAFTA would have a number of unintended consequences for the United States, including limited access to its key export markets, lower economic growth and higher prices for gasoline, cars, fruits and vegetables. [125] Members of the Mexican private initiative noted that many laws needed to be adapted by the U.S. Congress to eliminate NAFTA. Finally, this would give rise to complaints from the World Trade Organization. [124] The Washington Post noted that a review of academic literature by the Congressional Research Service concluded that « the overall net effect of NAFTA on the United States.