Alternatives to NAFTA

Alternatives to NAFTA

Despite the obvious benefits that NAFTA has provided to the economy, there have been criticisms of the agreement. Part of the reason for this, is because many opponents believe that it is giving certain advantages to counties such as Mexico (at the expense of American and Canadian workers). This is troubling, because over the course of time this is creating environmental and safety issues. As there are completely different regulations, that are applied in all three counties. This means that any kind of products coming out of Mexico could be of sub-standard quality. At the same time, there is the possibility that there may be some type of environmental damage from the increased amounts of manufacturing and the exploitation of local laborers (such as: having children working in factories). Over the course of time, this will provide limited positive benefits to the economy, while destroying the environment and the standard of living in many regions. As a result, some kind of alternatives must be introduced that will address these challenges.

Possible Substitute Strategies

There are several possible alternative approaches that will address the weaknesses of the agreement. One such area is to have all three countries, create environmental regulations that would be applicable anywhere NAFTA is in effect. The way that this can be accomplished is through enacting a series of laws that will set policies, as to how various products are manufactured in these areas. This will create a workable standard that could be used to protect the ecosystem. (Mittleman, 2000, pp. 135 -- 154)

Next, a series of laws should be established to ensure that there are minimum safety standards in all three countries. This will prevent manufacturers from leaving a particular part of North America, in order to build sweatshops elsewhere. As they will have: higher costs and similar regulations that they must follow during this process. Once this occurs, is when there will be a universal standard that will protect the environment and workers in the factories around North America. (Mittleman, 2000, pp. 135 -- 154)

At the same time, there must be the establishment of various regulatory agencies that will have the power to enforce these standards in all three countries. The basic model that can be used is to follow the provisions that were established in the financial services industry known as FINRA. This is a consolidation of American and Canadian securities law enforcement. What make this approach so unique; is that it is combining the authority of different agencies to create a way of universally enforcing the law. This kind of strategy could be used in the enforcement of safety and environmental regulations under the provisions of NAFTA. If this can take place, it will reduce the possible damage to the environment and it will improve safety standards in countries such as Mexico. This is when businesses will relocate to the region based on the benefits that they are providing. While making certain, that they are engaging in activities that will protect the interests of the general public. Over the course of time, this will ensure that the provisions of NAFTA are taking into account the views of stakeholders. This is when the agreement can provide tremendous economic benefits and deal with the after effects in achieving these objectives. (Mittleman, 2000, pp. 135 -- 154) ("FINRA," 2011)