NAFTA the Concept of Unification

NAFTA

The concept of unification can be seen from a variety of diverse viewpoints. In terms of the economy, for example, countries, states, or businesses may seek unification in order to not only simplify, but also consolidate the financial terms, issues and debts. Politically, unification can mean the simplification and standardization of rules, regulations and laws. Unification in terms of politics is often necessitated by factors such as economic pressure, as well as a need for standardization and control in terms of governance (Hulsmann, G.J.).

One of the most famous examples of such unification is the European Union. The EU not only consolidates the incurred debts of its member countries, but also serves as a unifying entity for the governance and political paradigms of these countries. The North American Free Trade Agreement (NAFTA), on the other hand, is based upon the economic needs of Canada, the United States and Mexico. However, it also serves the function of political unification in connecting the three countries in a single economic goal.

The unification of Canada, the United States and Mexico under NAFTA has become the world's largest free trade area. As such, the ideal is for future growth not only in the respective economy of each member country, but also in other matters of governance such as environmentalism. Furthermore, this future growth is envisioned to set a global example of the benefits connected with trade liberalization.

Economically, the financially poorer Mexico and Canada were able to increase their prosperity and growth by increasing their exports to the United States. Specifically, over half of Canada's products are now manufactured for the U.S. market, while Mexico's share of the United States import market has increased from 6.9% in 1993 to the 2002 figure of 11.6%. It is therefore clear that the Trade Agreement holds considerable current and future financial benefits for both those countries (Foreign Affairs and International Trade, Canada). Furthermore, manufacturers in all three countries benefit from the increased market potential of three countries instead of just one. In the United States, merchandise from 39 of the 50 states reached Canada as its most important destination (Foreign Affairs and International Trade, Canada).

Such import and export practices are considerably facilitated by events such as tariff reductions such as the one agreed upon between Canada and Mexico in 2003. In fact, under NAFTA, more or less all export and import flows among the three countries have occurred practically tariff-free.

This has not only benefited the economy of each member country, but also strengthened the already existing trading infrastructure within each country. Canada, for example, has been able to increase their exports to over 40% of its total gross domestic product. The success of NAFTA for these exports furthermore means an increase of jobs for the citizens of the country, and therefore an increase of the prosperity of each individual citizen. The same is true of increased job opportunities in the United States and Mexico. The increased opportunities for employment also means the more efficient use of manpower in each country. Employers and employees therefore now have an increased opportunity to utilize their talents under NAFTA. Canada's employment rate has for example increased by 17.5% since the inception of the Trade Agreement (Foreign Affairs and International Trade, Canada).

As mentioned above, other important matters have also received attention under NAFTA. Environmentalism has an increasingly important part not only of sustainable economic growth, but also of politics. This serves as another unifying factor of the three countries under NAFTA. Concern for the environment then connects with a concern for the human factor in terms of working conditions. NAFTA therefore focuses on a shared concern for the interconnection between humanity and the environment within which human beings function. As such, the three member countries are involved in several parallel environmental and labor agreements. Specifically, for example, the North American Agreement on Environmental Cooperation successfully enforces environmental laws in all three member countries. This reinforces the unifying function of NAFTA in a general concern for the environment and a standardization of laws focusing on this issue. The North American Agreement on Labor Cooperation combines the efforts of the United States and Mexico in protecting the basic rights of workers (Foreign Affairs and International Trade, Canada).

The three countries under NAFTA are therefore unified not only in terms of the initially envisioned economic sphere, but also in terms of other issues such as environmentalism and political matters. Despite all these benefits however, there are those who are less optimistic regarding the current results and future prospects of the Trade Agreement.

The opponents of the Agreement for example countered the positive assertions of its proponents with predictions of lowered wages, the destruction of existing good jobs in the United States, the undermining of democratic control in domestic policy and a degradation of health, environmental and food safety (Public Citizen).