What Was A Major Argument For The North American Free Trade Agreement (Nafta)
Restrictions on agricultural production. In the period following the 1910 revolution until the 1980s, Mexico had a land distribution system in which the country was redistributed by prosperous landowners and managed by the government. This ejido system, created under Mexican agricultural law, changed in the 1980s, when the government began implementing agricultural and trade reform measures. Privatization of the Ejido system to stimulate competition was part of the changes. Mexico`s unilateral reforms include the abolition of state-owned enterprises related to agriculture and the removal of support for basic prices and subsidies. Mexico also had a government agency called CONASUPO, which interfered in the agricultural sector. The Agency purchased basic foodstuffs from farmers at guaranteed prices and processed or sold it cheaply to processors and consumers. Many of Mexico`s national agricultural reforms coincided with the NAFTA negotiations that began in 1991 and continued beyond the implementation of NAFTA in 1994. Unilateral reforms in the agricultural sector make it difficult to separate these effects from the effects of NAFTA. In 1999, conasupo was abolished.
Agriculture, in particular, has seen a boost. Canada is the largest importer of U.S. agricultural products, and Canadian agricultural trade with the United States has more than tripled since 1994, as has Canada`s overall agricultural exports to NAFTA partners. The trade statistics in this paragraph are based on trade data from the Ministry of Commerce. US President Donald Trump opposed it during his election campaign and promised to renegotiate the agreement and «open it» if the US could not get its desired concessions. A renegotiated agreement between the United States and Mexico-Canada was adopted in 2020 to update NAFTA. But why did Trump and many of his supporters see NAFTA as «the worst trade deal of all time,» while others saw their main flaw as a lack of ambition and the solution as even more regional integration? What did we promise? What was delivered? Who were the winners of NAFTA and who were the losers? Read on to learn more about the history of the agreement, as well as the key players in the agreement, and how they paid off. There is broad agreement among economists that NAFTA has benefited North American economies. Regional trade increased sharply in the first two decades of the treaty, from some $290 billion in 1993 to more than $1.1 trillion in 2016.