Predominant components that shift standpoints and creates controversy are
associated with the fundamentals of the North American Free Trade Agreements. These components include interconnections, economies, and major impacts. NAFTA is a treaty between the countries Canada, United States and Mexico in which they agreed to remove trade barriers between them, allowing an increase in investment opportunities in NAFTA. The source covered on NAFTA creates presumptions on the controversial topic regarding the beliefs on both the pros and cons of free trade. The cartoon portrays a factory in Canada shutting down and being relocated to countries in the south as manufacturing are at low cost. This introduces a great portion of the job loss prospect sent from Canada to the countries in the south. Avoiding governmental regulations is a strong factor affecting the outsourcing of these developing countries. The cartoonist depicts what seems to be a happy wealthy man because he is able to purchase a “Mexican Chain” and a “U.S. Padlock” due to NAFTA. While analyzing the entire source and issue, one should not support NAFTA as it erodes predominance and independence in countries through the formation of job loss. As well, enabling transnational corporations to oppose government regulations through the use of poor countries for the solitary pursuit of benefits such as profit.
The inclusion of developing countries in NAFTA easily permits transnational
corporations to disregard higher wages and government regulation as well as, manufacture and outsource products in impoverished countries. Companies can effortlessly ship their products back to their country after manufacturing procedures. These scenarios lead to job loss in countries like Canada and the United States while supporting domination over countries with little to no regulation and power. An example of NAFTA being at its ‘ugliest’ is having the General Motors closing their factories in Canada and shifting and rebuilding them in Mexico. Here they are able to pay workers at lower wages and freely ship their products back to consumers in Canada. The discontinuation of these General Motors caused thousands of workers in Canada to lay off, finding that it created a more extensive impact on the economy. Momentous alterations must hover over these easy routes on government regulations which can result in the cessation of evil corporate greed that does not benefit all.
Despite having shortcomings, the North American Free Trade Agreement
enables free trading between Canada, United States, and Mexico, resulting in interconnections with world economies through the relegations of trade in farm productions, automobiles, clothing, and many more. The defects, however, come within trading practices which encompasses economical overthrow on developing nations for the aspiration of achieving sovereignty and bad pursuits. The cartoon evidently brings one to believe that NAFTA gives power to the wrong hands, calling for immediate revisions. Now, one is left to ponder, despite the involvement of interconnection, to what extent should we adopt to NAFTA and allow these three nations to work around government policies through the use of developing countries for the intent of making a profit?
Radheshyam Malakar, M.A. Economics, He Has Done Recent Research On "Impact of WTO On Nepalese FSS" (Central Department of Economics), Lecturer of Economics, Kumari Multiple Campus, Kathmandu