Abstract

The first reaction that comes to mind after reading the article is that free trade has come with more pros than cons, the author even goes on to quote the bible to better push the message home. The message is clear; free trade has boosted economic growth, the cons notwithstanding.  A brief history shows how the 1994 agreement to come up with the North Africa Trade Agreement (NAFTA) was necessitated. Since the end of the cold war, there had been a declining trend in existing trade barriers and trade tariffs for these 3 countries. This was of course for the good of the economic development of the region. It is clearly wiser to trade on level ground, with little on no barriers to trade.

As the facts are discussed, there is a general feeling that all the implications both positive and negative are centered on Mexico. For example, Mexicans have both benefited and lost in this major agreement. They have benefited because trading freely with the US, the standards of living have risen.  A notable loss is the fact that with cheap imports from large American farms; small scale Mexican farmers have lost heavily.

In my own perspective and with the give facts, I stand for this pact but I believe better legislation could to help Mexican framers be able to sell at a fair ground. NAFTA is the best move fro this region as evidenced by the percentage growth measured as a share of GDP. In the 10 years between 1990 1nd 2010, USA trade with Mexico rose to 3.0% from 1.4% while it jumped from 3.4% to 4.2% in the case of Canada.

This begs the question, why is Mexico’s GDP as at 2010 still at lower than with Canada (comparing 4.2% and 3.0%). Considering these are countries neighbors, some legislation can be put forward increase trade between the two big countries here with the smaller one than within themselves. Canada and the US should strive to raise the economic conditions in Mexico (Carbaugh, 2010). They stand to gain if the level of living in Mexico is raised. Generosity is the key here but even the Bible warns that it all comes at a price. It is clear that the price is worth the outcome.

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