Creation of North American Trade Agreement

Question

Mr. Ross Perot, former Presidential candidate of the Reform Party, that is the third political party in the United States, had strongly protested in the creation of North American Trade Agreement (NAFTA), however, which was inaugurated in the year 1994, due to fear of losing American jobs to the Mexico where it is cheaper to hire the workers. State merits and demerits of Mr. Perot’s position on NAFTA? Considering recent economic developments in the North America, how would you position of Mr. Perot’s is assessed on the NAFTA?

Answer 1

Since the growth of NAFTA, many American companies certainly have invested heavily in the Mexico, sometimes relocating the production from the United States to Mexico. Though this would have temporarily resulted in the unemployment of some American workers, they were rehired eventually by the other industries for higher wages. Presently, unemployment rate in the U.S. is pretty low by the historical standard. Simultaneously, Mexico has been experiencing an economic boom. It has become apparent that both the Mexico and the U.S. have benefited from NAFTA.  Concern of the Mr. Perot’s has been ill founded.