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Mexico Since Nafta Essay

1035 words - 5 pages

The purpose of this report is to help employees understand the economic experience of Mexico since The North American Free Trade Agreement (NAFTA). Specifically, it looks at the at trade liberalization, national sovereignty, relationship with the World Bank and International Monetary Fund (IMF), World Trade Organization (WTO) and committees, workers rights, and types of economic development. There is a lot of controversy when it comes to NAFTA and whether it has helped or hurt Mexico. Controversy has been especially high in the aspect of agriculture trade.NAFTA is a trade agreement between the U.S., Canada, and Mexico that went into effect January 1, 1994. NAFTA has opened previously ...view middle of the document...

"Mexico will pay a heavy price, ceding a significant chunk of its national sovereignty, in order to tap into nearly $50 billion of emergency U.S. and international loans that are designed to stanch its financial crisis… The economic conditions expected to be imposed by the IMF and World Bank mean that the government will effectively share control of its destiny for many months to come" (World Trade Organization, 2002). Due to Mexico receiving funds from the IMF and World Bank their relationship has been one of give and take. The IMF and World Bank give them funds while they impose certain conditions on Mexico.Mexico has created a fairly good relationship with the WTO. "Mexico considers the WTO the main mechanism for both trade liberalization and the establishment of a framework based on world trading rules… With a view to furthering its economic opening, creating greater opportunities for developing countries and strengthening the multilateral trading system, Mexico supported further trade liberalization in the form of the launch of a new round of multilateral negotiations at the Fourth WTO Ministerial Conference in Doha, Qatar, in November 2001" (World Trade Organization, 2002). Mexico is viewed are working with the WTO to improve its economy and trade liberalization.Many people believe that worker's rights in Mexico have not improved. However, there have been some improvements. "The North American Agreement on Labor Cooperation (NAALC) rests on sound labor laws of the United States, Mexico, and Canada. This pact was approved as a side agreement of NAFTA and permits citizens of any NAFTA country to request that their government examine how labor laws in a partner country are being enforced. This agreement does not rewrite any country's labor laws, but puts public pressure on enforcement and, in the case of lack of enforcement of health and safety as well as child labor laws, can lead to trade sanctions… The Mexican government has held a series of public...

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