Posted on

Which Of The Following Countries Is A Part Of The North American Free Trade Agreement (Nafta)

The NAFTA provisions did not contain expedited procedures for legislative changes resulting from changes to the agreement. The Senate report on the implementation project suggested that “[i]] normal legislative procedures are expected to apply to such laws.” 88 unilateral land reform measures in Mexico have ended subsidies and price controls in the agricultural sector, resulting in higher tortilla prices. Tortillas are the staple food for Mexican food and a necessity for the poor. This is why higher prices have had a greater impact on the poor than on middle- and higher-income Mexicans. Mexico has also reformed its agricultural law. Countries that had been distributed to ejidos or rural groups after the 1910 revolution were granted the right to privatize. This has improved the efficiency of production processes, particularly in northern countries. According to a 2013 Jeff Faux article published by the Economic Policy Institute, California, Texas, Michigan and other high-concentration manufacturing states were most affected by NAFTA job losses. [97] According to a 2011 article by EPI economist Robert Scott, the trade agreement has “lost or supplanted” some 682,900 U.S. jobs. [98] Recent studies have agreed with congressional Research Service reports that NAFTA has little influence on manufacturing employment and automation, accounting for 87% of manufacturing job losses. [99] Other studies suggest that NAFTA has been disappointing in that it has failed to significantly improve the Mexican economy or reduce income gaps between Mexico and its northern neighbours65. Some argue that the success of NAFTA in Mexico was probably limited by the fact that NAFTA was not supplemented by complementary measures that could have fostered a deeper regional integration effort.

These measures could have included improvements in the areas of education, industrial policy and/or infrastructure investments.66 According to a World Bank study, NAFTA has brought economic and social benefits to the Mexican economy, but that it is not enough to reduce disparities in economic conditions between Mexico and the United States73.73 The World Bank believes that Mexico needs to invest more in education, innovation and infrastructure, as well as in the quality of national institutions.