| The North American Trade Agreement (NAFTA) | | | | farther away from free trade. Dumping and |
| was implemented on January 1, 1994. An | | | | tariffs are both activities that will keep the |
| extension of the previous Canada-U.S. Free Trade | | | | countries away from free trade.The greatest |
| Agreement of 1989, NAFTA is the second largest | | | | controversy is that trade has not really become |
| free trade area in the world. The agreement | | | | more fair at all with NAFTA but has even possibly |
| intends to limit restrictions on trade in many | | | | become more unfair. For instance, it is being |
| industries and phase out tariffs in a period of 14 | | | | argued that while trying to stimulate and protect |
| years. While NAFTA has created greater trade in | | | | trade in North America, NAFTA is inhibiting trade |
| North America, there still are concerns on how | | | | with other countries such as China. Another |
| well the trade agreement is accomplishing its goal | | | | problem is it looks as if growth is occurring only in |
| of deregulation. These concerns gained some | | | | the northern states of Mexico with little effect in |
| validity with the recent issuance of tariffs in the | | | | the southern states. The trade agreement has |
| steel tubing market in Mexico.After a careful | | | | been blamed for the increased concentration of |
| investigation, Mexico's Economy of Ministry came | | | | wealth in the United States and Mexico in the last |
| to the conclusion that the United States was | | | | ten years. |
| dumping their steel tubing products | | | | While Mexico's overall economy has picked up |
| into their country. The term "dumping" is used to | | | | since NAFTA, it appears that the richer are |
| denote any product that is sold to another | | | | getting richer while the poor are getting poorer. |
| country for a lower price than in its home market. | | | | The workers in Mexico have experienced a 20% |
| By many, dumping is believed to be unfair | | | | decrease in pay since the implementation of |
| competition. With the 469% increase in U.S. steel | | | | NAFTA. It seems that NAFTA is helping out |
| tubing imports from 1999 and 2001(reported by | | | | corporations without helping the people.As seen |
| Mexico's Economy of Ministry) it appears that | | | | from the recent steel tubing example, NAFTA still |
| there was some definite foul play occurring in the | | | | has a lot of room for improvement. We need to |
| industry. Mexico's Economy of Ministry felt that | | | | be aware of the term "free trade" and know that |
| tariffs were needed on U.S. steel tubing in order | | | | this means that products cannot be dumped to |
| to stop the effects of dumping and to help the | | | | other countries like steel tubing to Mexico. |
| economy in Mexico.On May 27, 2005 Mexico | | | | Because of this dumping, the country has to |
| issued tariffs that will raise prices of U.S. tubing | | | | compensate with tariffs and this brings us even |
| anywhere from 7 percent to 25 percent in hopes | | | | farther away from free trade. While the intention |
| of leveling out the playing field in the steel | | | | of NAFTA to stimulate the North American |
| industry. A statement made by the Ministry | | | | economy is a good cause, it has to be done in |
| declared that "imports from the United States | | | | the right way. We cannot sacrifice the people's |
| take place under conditions of price discrimination | | | | well being for the sake of the economy. Revisions |
| and | | | | to NAFTA need to be created to ensure that |
| harm national production of similar products." This | | | | free trade will exist between the countries.Kaitlin |
| event has proven that NAFTA has not cured all | | | | Carruth is a client account specialist with 10x |
| our problems with trade and is still struggling in | | | | Marketing - More Visitors. More Buyers. More |
| deregulation. In result of trying to save jobs in the | | | | Revenue. |
| steel industry, both countries have brought us | | | | |