Department of English

Spring 2006 High School Edition

The U.S. Afta NAFTA

John Grimshaw
Formal Essay (11th-12th)
Second Place
Canyon View High School
Teacher: Susan Merrell

The five-letter word "NAFTA," while seemingly small, has had a stunningly large impact upon the North American continent.  "NAFTA," an acronym for North American Free Trade Agreement, is a pact initiated in 1994 between Canada, Mexico and the United States.  NAFTA secures these countries into one of the world's largest free-trade zones.  It unites them by gradually eliminating tariffs on most goods produced and sold among them.  It also establishes rights and obligations regarding trade in service, intellectual property, and international investment (Schott).  Some of the other objectives of NAFTA, which gave it a much needed boost through congress, were that it was to be supplemented with commissions, which would monitor developments related to environment and labor issues and to help solve problems that may arise as regional trade and investment expands (Happily, Schott).  The agreement was supposed to increase American exports to Mexico, thereby enhancing the U.S.'s trade surplus that would provide for higher U.S. wages and 200,000 new jobs per year (Wallach).  It appeared to be the perfect wonder plan.  When examining what NAFTA actually accomplished and all of its shortcomings, one easily recognizes its negative impact upon the modern American society.

NAFTA contributed to the deterioration of the bond between Americans and their leaders by creating animosity towards the government.  From its first mention, NAFTA gained opponents.  Church-groups, environmentalists, trade unions, and consumer organizations voiced their skepticism towards the agreement.  In 1993, despite of all these efforts, the U.S. Congress passed NAFTA by 14 votes (Wallach).  NAFTA barely passed.  One may pose the theory that if congress knew how important this deal was, and the impact it would have on America's economy and well being, Congress should have re-considered its decision if the vote was anything but unanimous.  In this way, Americans felt betrayed by their "protectors," and the rift grew between them.  The opponents of NAFTA, even after showing their contempt for the agreement, seemingly had no effect upon the outcome of the decision.

NAFTA also gained opponents from the beginning, and in turn, for the government because it eliminated all or many of the trade barriers that once existed between the U.S., Canada, and Mexico.  These trade barriers, such as tariffs and quotas placed on goods coming into the country, are used to encourage consumers of that country to buy from domestic firms and thus protect the country's economy (Handlin).  The government appears to have left Americans in the background and focus more on other countries.  The government blatantly exposed itself by diminishing its protective walls.  Such neglect expressed from the government towards its citizens surely raised harsh feelings on the part of those whose businesses will be affected from the removal of their coverings.

NAFTA generated bad views in citizens towards their government because NAFTA resulted in a trade deficit.  In the summer of 2004, the U.S. ran up trade deficits in agricultural products.  Not since 1986 had the country imported more agricultural goods than it exported (Stern).  Just a year after NAFTA was passed, the previous U.S. trade surplus with Mexico turned to deficit (Wallach).  Economists warned, "[this] deficit presented an imbalance that could threaten long-term economic growth" (Stern).  The passing of this pact jeopardizes the future of America's economy.  The citizens of the U.S., out of pride, will not tolerate any act that appears to weaken their country.  The government is inflicting this damage upon itself.  Any logical American has a primordial defiance within himself or herself to oppose such masochistic actions.  Such disunity between government and citizens is an obvious negative side effect of the passing of NAFTA.

The U.S.'s thriving export trade helps the country achieve high levels of income and employment (Handlin).  As seen in previous data, this abundance of exports is turning sour.  One great attribute of America before NAFTA was its high levels of income and employment.  After NAFTA affected the U.S.'s trade deficit, these noble attributes began to slip.  Americans lost their once-prominent dominance over being the great employer.  Americans look to their government and with stares of disappointment question the government's ability to make forward-looking decisions.

Another reason the deficit NAFTA produced created negative feelings towards congress is the existence of American pride.  Because of the U.S. trade and budget deficits on financial markets, Russia hinted about transferring its foreign reserves from U.S. to Euro holdings (Stern).  Americans take great pride in being the best the world has to offer.  The mere thought of seeing this power begin to fade is a serious negative impact upon the U.S.

Since NAFTA passed, Americans' living standards have been compromised.  After the pact was signed, restrictions on the border of U.S. and Mexico were decreased, thus decreasing inspections.  5,000 trucks cross the Mexico-US. border daily.  Only 0.1% of these trucks are inspected, leaving the other percent carrying contraband, contaminated fruits, and other potentially dangerous products (Wallach).  This is a stark contrast from the goals of NAFTA.  "…(NAFTA will lead) to much more thorough border inspection, reducing the amount of unsafe food shipped over North American borders…" stated the government document passed in congress (Garten).  The goods coming into America are not safe.  The U.S. is being flooded with Mexican exports that no one can prove are healthy.  The modern American society is being threatened by being exposed to many harmful and unsafe products. 

The U.S.-Mexico border region is full of pollution, sewage, slums, and toxic waste from all the factories located there.  These factories exist because they use the cheap Mexican labor, but since they exist in the free border region, can escape U.S. tariffs.  By passing NAFTA, congress supposed this problem would be solved, but in fact, the population of this putrid area grew 60% after the passing of NAFTA (Wallach).  NAFTA can claim no positive fact about this whole ordeal.  The dangerous, mostly illegal area is growing.  This area taints the United States because it is actually part of it. 

Since NAFTA passed, Americans' jobs have been put into crisis.  For one, NAFTA has flat-out caused job losses.  Using NAFTA's jobs per billion dollars of net exports formula, which they used to predict NAFTA would create 200,000 jobs a year, NAFTA had cost the U.S. 400,000 plus jobs by 1998 (Wallach).  Many Americans looked forward to these new tentative job openings.  When they learned that they might actually lose their jobs, the attitude of Americans was discouraged.  These job losses are due to increased Mexican imports and from a shift in U.S. production to Mexican plants (Schott).  In December 1996, employees of Guess Clothing Co. were sent packing when 1,000 jobs were shunted from Los Angeles to less labor-costly areas, including 800 to Mexico (Wallach).  If anything affects Americans for the worse, it is losing a job.  Whole cities can be hit and changed because of NAFTA.  It is not necessarily the factories’ fault; they have to compete with the new Mexican competition, and they must do what they have to do to succeed.  Without NAFTA, these people would not have had to find new jobs.

NAFTA has also changed the quality and kinds of jobs in the U.S.  Because multinational corporations are able to take advantage of cheap labor, some categories of skilled and semiskilled jobs are increasingly “out-sourced” from more prosperous countries, such as the U.S.  This process is restructuring the job market and further eroding the strength of organized labor (Henretta).  Many of America's jobs are being sent away to other cheaper countries, one of them being Mexico.  America is getting left out of the job world.  Allowing other countries to take control of once-American jobs is a disgrace to those proud Americans who worked those jobs before.  Americans should have the same chance to work those same jobs. 

Where do these people go when they lose these jobs?  Many are largely re-employed in the lower wage service sector.  The U.S. Labor Department predicts in ten years the top four job-growth categories will be cashiers, janitors, retail sales clerks, and waiters (Wallach).  The very fiber of American jobs is changing because of NAFTA.  People now, instead of learning a skilled job, may be replaced doing mindless drone work.  The standard of American jobs is drastically dropping.

NAFTA has had a negative impact upon the modern American society.  It created animosity towards the government, it compromised Americans' lives and jobs, and put them in crisis.  It did not live up to what it was stated to, and had it not been passed, America could be in a much better position.