As for the agriculturalbusiness, NAFTA has created competition between Mexican farmers and the UnitedStates with the production of corn.
This put almost two million Mexican farmersout of work, thus beginning the trend of migration. Because these farmers wereput out of work on their own soil, they started migrating to the United Statesseeking out jobs (Hanson, 2017). This has caused farmers to give up instead ofplanting other crops.
This is when illegal immigration started to peak. Sincethen, the number of Mexican immigrants have doubled to nine point two millionin 2000 (Floyd, 2017).Since the beginning ofthe free trade agreement, the United States has lost 60.8% of theirmanufacturing jobs due to the competition against Mexico and their lower wages(NAFTA, 20 Years Later: Do the Benefits Outweigh the Costs?, 2014). This hasalso caused many of these job opportunities to shift over to China for lowwages, as well. NAFTA has now been selected as the root of the problem for theloss of American manufacturing jobs. Since 2008 when the financial crisis hitAmerica, the unemployment rate has not moved much, staying above six-point fivepercent that was up until 2014. (Floyd, 2017) The agreement has also been namedas the reason for the lowered wages and increased inequality of jobs (NorthAmerican Free Trade Agreement, 2017).
In the past, many presidential candidates such as Barack Obama,Hillary Clinton, Ron Paul, and etc., have made the pledge to update theagreement up to current standards (Amadeo, History of NAFTA and Its Purpose,2017). Today, the recently elected president, Donald Trump has threatened towithdraw the United States from NAFTA if Mexico and Canada do not agree to meetthe terms he has provided them. President Trump also wants Mexico to eliminatethe maquiladora program and the VAT tax on United States exports (Amadeo,History of NAFTA and Its Purpose, 2017). Trump would also like to add athirty-five percent tariff on to Mexican imports, this is because he claimsMexico is benefiting at the expense of the United States. The American economyrelies on several different countries for their imports. Mexico wantspermission to allow their trucks on American roads. Currently, in order for Mexicantruckers to deliver cargo to the U.
S., they are having to unload twenty-fivemiles from the border, where short haul vehicles will reload them onto domestictrucks for final delivery, costing Americans between two and four hundredmillion dollars (Sommer, 2008). Also, Canada wants the U.S. to end theirtariffs on lumber and dairy products.
Several have urged for the president to updatethe agreement, and not just end it. “Butfor the love of God don’t do any harm to something that has been soeconomically beneficial to states all across America,” -Glenn Hamer, presidentand CEO of Arizona Chamber of Commerce (Helmore, 2017).