Petit (EN)
Posted on 11/09/2023 by Petit on Uncategorized

Which of the following Is Not an Effect of the North American Free Trade Agreement

The North American Free Trade Agreement, or NAFTA, has been a controversial topic since its inception in 1994. While its supporters argue that it has led to increased trade and economic growth between the United States, Canada, and Mexico, others claim that it has resulted in job losses and environmental damage. In this article, we will explore one question that often arises when discussing NAFTA: which of the following is not an effect of the agreement?

Before we answer this question, let`s briefly review what NAFTA is and its main provisions. NAFTA is a trade agreement between the United States, Canada, and Mexico that eliminated tariffs and other trade barriers between the three countries. It also established rules for intellectual property protection, investment, and dispute resolution. Since its implementation, NAFTA has had a significant impact on the economies of the three countries.

So, which of the following is not an effect of NAFTA? Let`s look at each option:

A. Increased trade between the three countries

B. Job losses in the United States

C. Improved environmental standards in Mexico

Option A is a clear effect of NAFTA. Since its implementation, trade between the United States, Canada, and Mexico has increased significantly. In 2019, the total trade between the three countries was over $1.2 trillion.

Option B is also a commonly cited effect of NAFTA. Critics of the agreement argue that it has led to job losses in the United States as companies move their operations to Mexico to take advantage of lower labor costs. While the extent of job losses is a topic of debate, it is clear that some industries, such as manufacturing, have been impacted by increased competition from Mexico.

Option C is a bit trickier. While NAFTA did not specifically address environmental standards, it has had some indirect effects on the environment. For example, the increased trade between the three countries has led to more transportation and shipping, which can contribute to air and water pollution. On the other hand, NAFTA has also encouraged cooperation between the three countries on environmental issues and has led to the development of programs to protect natural resources.

So, which option is not an effect of NAFTA? The answer is C – improved environmental standards in Mexico. While NAFTA has had some indirect effects on the environment, it did not specifically address environmental standards or regulations. However, it is worth noting that NAFTA did include a side agreement called the North American Agreement on Environmental Cooperation (NAAEC), which aimed to promote environmental protection and encourage cooperation between the three countries.

In conclusion, NAFTA has had a significant impact on the economies of the United States, Canada, and Mexico. While its effects are complex and multifaceted, increased trade between the three countries and job losses in the United States are commonly cited effects. It is important to note, however, that NAFTA did not specifically address environmental standards or regulations, although it did include the NAAEC as a side agreement aimed at promoting environmental protection.