NAFTA (North American Free Trade Agreement) or Free Trade Area of the Americas, is an economic bloc that integrates three North American countries: the United States, Canada and Mexico. The block came into effect in 1994.
Mexico, compared to the other two members, is very far away on several issues, as the United States and Canada play very important roles on the world stage, especially the US - the greatest economic, military and politics.
There is a big socioeconomic difference between the members of NAFTA, as Mexico accounts for only 5% of the GDP (Domestic Product Gross) generated by the bloc, not to mention that the quality of life of the Mexican population is well below US standards and Canadian; these countries have a high HDI (Human Development Index). Mexico faces problems typical of underdeveloped countries, such as slums, unemployment, marginalization, criminality, lack of opportunities, among others. The North American GDP is about 17 times higher than that of Mexico.
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Mexico joined NAFTA from a maneuver by the United States and Canada, which had the objective of install their companies in Mexican territory and enjoy tax benefits, cheap labor, raw materials, etc. In addition, the United States intended to establish Mexicans in its country, reducing the incidence of illegal entry of immigrants. With the influx of investments, the country's economy can grow and give rise to new jobs and opportunities, thus, the Mexican population will not need to seek a new life in the neighboring country.
For Mexico to stand out in the bloc, it is necessary to overcome a series of socioeconomic problems, since its partners have consolidated savings and their companies are able to place products with prices and quality that suffocate any company Mexican. Not to mention the strong American influence within the bloc, which always seeks to satisfy its interests.
By Eduardo de Freitas
Graduated in Geography
Would you like to reference this text in a school or academic work? Look:
FREITAS, Eduardo de. "Mexico's Participation in NAFTA"; Brazil School. Available in: https://brasilescola.uol.com.br/geografia/nafta2.htm. Accessed on June 28, 2021.
