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Old 11-24-2008, 09:44 AM
 
972 posts, read 3,494,383 times
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We all know about the promise (threat) from Barack Obama to renegotiate NAFTA or whether their partners (Canada and Mexico) not accepted it, cancel it.

This is good or bad for Mexico? We know that the Democrats are protectionists and trade unionists and more than opposing the free market, but what the consequences would be to cancel NAFTA?

To begin with increased illegal immigration to the USA since the jobs of millions of Mexicans would be threatened by a possible closure of the U.S. border to Mexican goods.

Greater political and financial instability in the southern neighbor, which could lead to a cutoff socialist regime like the one that has Chavez in Venezuela.

Given all these issues, think it would be desirable to renegotiate the treaty?
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Old 11-24-2008, 09:49 AM
 
972 posts, read 3,494,383 times
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In figures two years ago, the Mexican Secretariat of Economy and acknowledged that NAFTA "has not yet paid to U.S. workers" (which helps explain the enthusiasm of Obama revisionists), but also that the Treaty, in its first 12 years to operate, reaching an exchange of two billion dollars a day; that from 1993 to 2005, the Mexican economy grew 39.8 percent, the value of exports to the U.S. and Canada quadrupled to reach 182 billion dollars, and that it fell from a balance of trade deficit with a pair of partners to a surplus of 57 thousand 800 million dollars.
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Old 11-24-2008, 10:28 AM
 
Location: Limestone,TN/Bucerias, Mexico
1,452 posts, read 2,746,617 times
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Interesting post - and more interesting question.. I wish there were a NAFTA for Dummies site to better understand the benefits/detriments of trade with our neighbors.

All I know is that if you go to City-Data's general forum where these issues are discussed, there are vehement opinions - mostly opposed to what trade has done to US industries.. I know there are some who contend that the US has mostly exported financials (hmm, we all know what's happened to that!) but what else do we export?

If something doesn't happen soon to fix the huge mess we're in there'll be nobody to buy all the imports from China!

As to Obama, from what I've heard there'll be lots of free-traders in his Cabinet including Richardson as head of Commerce.

I, personally, don't know where I stand on all this. Frankly though, I'd rather import from our neighbors in Mexico - thereby helping both our economies through more jobs in Mexico and thus, fewer illegals flowing into the US and sapping human resources and taking the jobs that still remain.

The US is bleeding industries and jobs, which is very scary. There are, however, fewer Latino workers in this part of the country (TN) where you used to see many!
And I don't understand though how trade with Columbia helps the US..

When I go to Mexico, I see a vibrant economy mostly related to tourism.. Here, it's a lot of doom and gloom.

Interesting comparison - a Thanksgiving dinner at a quality restaurant in the Vallarta area runs from $35 to $45 pp. Here in TN we're going to an famous historic inn and we're paying $25 pp..
What does that say?
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Old 11-24-2008, 11:25 AM
 
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I think that jobs that are lost in the U.S. are not due to NAFTA, but I think they are for trade with China.

One example: The problem in wich the automotive americans companies are is clear, GM, Ford and Chrysler did not lose market because of the NAFTA with Mexico, in fact these brands sell quite well in Mexico, it lost that have fallen behind in design and service against the japanese companies and in a near future the Chinese... But blaming the neighbor to the south is easier.

The americans buys more cars made in Japan, Korea and Germany that from their proud US companies, so What does that say?
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Old 11-25-2008, 03:29 PM
 
Location: Limestone,TN/Bucerias, Mexico
1,452 posts, read 2,746,617 times
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Quote:
Originally Posted by el_inombrable View Post
I think that jobs that are lost in the U.S. are not due to NAFTA, but I think they are for trade with China.

One example: The problem in wich the automotive americans companies are is clear, GM, Ford and Chrysler did not lose market because of the NAFTA with Mexico, in fact these brands sell quite well in Mexico, it lost that have fallen behind in design and service against the japanese companies and in a near future the Chinese... But blaming the neighbor to the south is easier.

The americans buys more cars made in Japan, Korea and Germany that from their proud US companies, so What does that say?
You are so right - I guess I got a little off-track with the talk about NAFTA but *of course* it is our imports from China that are causing huge problems for US industry - as well as our exporting many jobs to India and poorer countries where lower wages are paid.

So true that Mexico has become a scapegoat for all this.. But I do think people are starting to catch on and questioning how the 'GLOBAL ECONOMY' is actually helping the US.. As far as the auto industry goes; as I think I said already there's lots of debate raging on the other C-D forums about this issue and whether they should be 'saved' with a bailout.
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Old 11-25-2008, 07:20 PM
 
47,576 posts, read 58,699,632 times
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Quote:
Originally Posted by el_inombrable View Post
We all know about the promise (threat) from Barack Obama to renegotiate NAFTA or whether their partners (Canada and Mexico) not accepted it, cancel it.

This is good or bad for Mexico? We know that the Democrats are protectionists and trade unionists and more than opposing the free market, but what the consequences would be to cancel NAFTA?

To begin with increased illegal immigration to the USA since the jobs of millions of Mexicans would be threatened by a possible closure of the U.S. border to Mexican goods.

Greater political and financial instability in the southern neighbor, which could lead to a cutoff socialist regime like the one that has Chavez in Venezuela.

Given all these issues, think it would be desirable to renegotiate the treaty?
The only thing is -- it was after NAFTA was signed that immigration from Mexico to the USA became massive. Pre-NAFTA it was a trickle.

I think NAFTA was a mistake because it made a big flip in Mexico from rural to urban in way too quick of a time. Maquilas tended to prefer women in hiring which destabilized the families and upset traditions that hold people together. It also brought up many people to the border, cutting them off from their roots. See, I live near Ciudad Juarez and it's really gotten bad there but it used to be a semi-rowdy, semi-sleepy border town that had a lot of appeal.
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Old 11-25-2008, 07:26 PM
 
47,576 posts, read 58,699,632 times
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Quote:
Originally Posted by SarahSal View Post
Interesting comparison - a Thanksgiving dinner at a quality restaurant in the Vallarta area runs from $35 to $45 pp. Here in TN we're going to an famous historic inn and we're paying $25 pp..
What does that say?
That would say "gouging" to me really. Thanksgiving Day isn't a Mexican holiday and they can up the price considerably on Americans.
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