How the Free Trade Agreement Affects You

Do you know what a trade deal is and how it affects you? You should because a free trade agreement is something that involves you and all skilled trades found in the world. It plays a part on daily purchases, from cars to groceries. You would be amazed at how directly free trade impacts your life. It is more than just stock market news regarding the latest rise and fall in stocks due to free trade. It can affect your job and job security.

The definition of free is trade without restrictions. That is the premise the North American Free Trade Agreement is based upon, and therefore dictates how it operates. It is between Mexico, Canada and the United States of America. These three countries are allowed to trade material goods without the tariffs or taxes that another country will face if a trade deal has not been forged. But controversies have arisen about NAFTA.

A trade deal was worked out between Mexico, Canada and the United States. The United States and Canada agreed not to charge or change the pricing of goods produced in Mexico and then sold in either the U.S. or Canada. The problem is that goods are cheaper to produce in Mexico because labor wages are so incredibly low. Many U.S. and Canadian companies are relocating their factories to Mexico because the labor laws are so lax. What does this do to U.S. and Canadian jobs? Well, it causes massive lay offs and wages to fall, which in turn, negatively affects the economy.

The North American Free Trade Agreement will always be a subject of sore feelings and debate until something is done to correct some of the labor issues. It is a shame that Mexico has such a poor economy and that some American and Canadian companies are taking advantage of this fact. It is important to look at the labels on merchandise, and buy those that read "Made in America" or "Made in Canada" because there is an overwhelming movement to purchase items produced at home. Yes, some Mexican goods are of lesser quality, yet when a fifty percent savings on a pair of jeans is offered, most people will go with the cheaper product.

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