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International Politics on the World Stage, Brief 4/e
World Politics: International Politics on the World Stage, Brief, 4/e
John T. Rourke, University of Connecticut - Storrs
Mark A. Boyer, University of Connecticut - Storrs

International Economic Competition and Cooperation

Is the NAFTA a Success or Failure?

Visit the following NAFTA sites below to determine
whether the agreement is a success or failure.

http://www.dfait-maeci.gc.ca/nafta-alena/menu-e.asp

http://www.naftaworks.org/NAFTA/NAFTAHighlights/NAFTAUpdate7years.pdf

http://www.citizen.org/trade/nafta/index.cfm

In January 1994, the United States, Canada, and Mexico formed the world's largest free trading region. The North American Free Trade Agreement (NAFTA) opened the economic borders of the three countries in an effort to contend with the European Union. Its primary objectives were to promote increased trade, remove tariffs among the members, and elevate the Mexican economy to the level of its new partners. U.S. critics, however, argued that the agreement would lead to a decline in U.S. economy and the eventual elimination of a large number of its skilled labor forces. Their basis for this argument was the belief that U.S. companies would be enticed to relocate outside the country, mainly Mexico, where regulatory laws are not as stringent and labor is less expensive.

Were the critics correct in their predictions? Did the NAFTA induce the mass exodus of U.S. companies? Did the U.S. labor force and economy suffer from the agreement? Or has the NAFTA succeeded in competing with the open economy of Europe? Examine the NAFTA by visiting its site above, then click on the two other links for a pro & con view of the agreement. Answer the questions below and decide if the NAFTA is a success of a failure.



1

What institution was created by the NAFTA for the promotion of labor principles? Name five of the eleven major labor principles.
2

Has the NAFTA helped or hurt the American worker?
3

After viewing the two opposing sites (Public Citizen and NAFTA Works) would you consider the NAFTA a success or a failure? Explain.