NAFTA and Its Original Intent

¶ … international community depends on a wide array of nongovernmental organizations to deliver the social and economic assistance needed to join the global economic community. Among the organizations committed to this end is the North American Free Trade Agreement (NAFTA) which purports to improve the trade relationships among the countries of Latin and North America. To determine the efficacy of NATFA in promoting seamless trade between the United States and Canada, this paper review the relevant literature concerning these issues to develop and informed and timely answer to the question, "If NAFTA a good deal for North America or not?" A summary of the research and salient findings concerning these issues are provided in the conclusion.

In truth, it would seem that anything that facilitated increased trade among North American countries would be advantageous. As the official Web site for NATFA points out, "For over 30 out of the 50 States, Canada or Mexico rank as the first or second largest export market. Many American small business exporter's first foreign customers are in Canada or Mexico and under NAFTA, U.S. trade with Canada and Mexico have supported over 140,000 small and medium-sized businesses" (North American Free Trade Agreement, 2015, para. 1). Therefore, given the enormous amounts of money involved, it is not surprising that the impact of the North American Free Trade Agreement (NAFTA) on the stakeholders who are involved, particularly Mexican workers, has been the focus of a growing body of research. For instance, according to Truett and Truett (2007), "In recent years, the effect of the North American Free Trade Agreement (NAFTA), implemented in 1994, on the Mexican maquiladora industries has been a subject of continuing controversy" (p. 374). Despite the ongoing bloodshed that is a concomitant of growing drug trafficking in the region, the original intent of NAFTA was to provide a rising tide that would raise all economic boats. In this regard, Truett and Truett report that, "While certain provisions of the NAFTA were potentially favorable to the maquiladoras in the early years of the agreement, other aspects of the pact revoked some of the special status given to those firms" (2007, p. 375). Moreover, and notwithstanding the apparent best intentions of this transnational agreement, the impact of NAFTA has not been congruent with the agreement's original intentions. For instance, Truett and Truett add that, "The goal of NAFTA with respect to the maquiladoras appeared to be to integrate them more fully into the domestic (Mexican) economy while further opening Mexico to international trade with the United States and Canada" (2007, p. 375)..

Despite the provisions of NAFTA which stipulate that Mexican tractor-trailers entering the U.S. To deliver cargo from Mexico are exempt from routine inspections, Mexican truckers continue to be the target of a purported concentration of law enforcement resources that has resulted in the imposition of $2.4 billion in retaliatory tariffs on U.S. imports on March 16, 2009 in response to U.S. noncompliance with NAFTA provisions (MacDonald, 2009). These fines were in response to a unilateral action by the United States to cancel a pilot project which allowed Mexican trucks unrestricted access to U.S. markets (MacDonald, 2009). Beyond these conflicts, there have also been disputes over the creation of a Professional Mutual Recognition Agreement (PMRA) that would permit accounting professionals to practice across borders in the NAFTA countries (Peek & Roxas, 2007).