Which Of The Following Is An Issue Confronting The North American Free Trade Agreement
About a quarter of all U.S. imports, such as crude oil, machinery, gold, vehicles, fresh produce, livestock and processed food products, come from Canada and Mexico, the second and third largest suppliers of imported products to the United States. In addition, about one-third of U.S. exports, including machinery, spare parts, mineral oils and plastics, go to Canada and Mexico. After in-depth discussions with Capitol Hill leaders, the White House responded to free trade issues with an “action plan” that broadens the agenda of trade negotiations to include non-trade issues in parallel multi-pronged negotiations. The plan requires the U.S. Environment Agency and Mexican authorities to negotiate a comprehensive agreement on environmental borders and to review joint technical assistance and enforcement assistance. In addition, it would maintain high environmental standards in the United States and provide a seat for environmental non-governmental organizations on advisory committees for U.S. trade agents. The plan also promises to fund the retraining of displaced people and forces U.S. and Mexican labor departments to discuss labor standards and practices. Disputes over the scope and scope of the labour adjustment program will certainly follow as work attempts to secure a comprehensive labour market policy from the administration. However, the action plan was enough to get a quick agreement in both houses of Congress.
Persistent controversy is expected to complicate the final vote on NAFTA. International factors have also strengthened Mexico`s propensity for free trade. Oil sales and commercial loans would no longer finance the country`s growth. Foreign investment is now essential to the success of Mexican economic reform and guaranteed access to U.S. markets is Mexico`s best hope of driving an investment boom. This is especially true for today`s competitive global investment climate. The revolutions in Eastern Europe and the need for capital inflows due to U.S. trade and budget deficits have changed the patterns of global financial demand and supply. The cost of German reunification is estimated at more than $600 billion and the needs of the Polish, Czechoslovakian and Hungarian countries seem modest compared to the costs of the USSR. In addition, the reconstruction of the Persian Gulf has absorbed Saudi and Kuwaiti resources. A free trade agreement could help Mexico avoid capital shortages. Mexican political conflicts have also entered the NAFTA debate.
Some Mexican opponents have sought a U.S. place to voice their political complaints, implying that a free trade agreement should be conditioned by international observers to verify fraud in Mexican elections. Some members of the U.S. Congress have questioned whether it is appropriate to deepen trade relations with a nation that does not fully share the democratic institutions of the West. Most of them seem to have decided that the Mexican political system is far from perfect, but not an outcast state that justifies the imposition of sanctions. On the contrary, a free trade agreement could allow Mexico to become more democratic, because a market economy will inevitably intensify the free flow of ideas. In the end, Mexico`s political situation was not a crucial issue for most members of Congress. “In addition to the increase in GDP and trade figures, [Africa`s continental free trade area] is making a very practical contribution to creating jobs for young and growing Africans,” vera Songwe, ECA executive secretary, said in an interview with Africa Renewal. Because labor in Mexico is cheaper, many producing industries have withdrawn some of their production from the high-priced U.S. Between 1994 and 2010, U.S.
trade deficits with Mexico amounted to $97.2 billion. During the same period, 682,900 U.S. jobs went to Mexico. But 116,400 of these jobs were ousted after 20