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