Welcome to WSYK#10, that is a one and a zero what should you know? I mean you can block and what should you know.
What should you know, you are watching what should you know because let us be honest what should you know. For some consulting and they are like hey, you know about NAFTA this is what you should say.
Of course I know about NAFTA are you serious? You are talking about the North American free trade agreement, the largest trade block in the world between United States, Canada and Mexico. So NAFTA became effective January 1, 1994 after when the first year of President Clintons presidency he made a top priority to push NAFTA through. so I have said it 15 times now.
But what exactly is it? what is going on behind the scenes? The whole point of NAFTA was to eliminate trade barriers between United States and Canada and Mexico. Now you do not want to get too technical here but basically an example of a trade barrier is a Turf and I am going to hit you with a real quick example.
Let us see before NAFTA, you made shoes in Mexico and you are going to import them into the Untied States, well United States government is going to say hey, “We are going to slap you with an extra tax because they were made in Mexico.” After ***** the tax is gone. And there fore there is no difference between producing the shoes in Mexico selling in the United States pressing to Canada to the United States, United States Canada, Canada Mexico, Mexico Canada.
The small problem with that this may not be a problem but the small thing that happens because of that that the fact it wages in Mexico or just a wage less in the United States. Tons of US manufacturing capacity pretty much picked up at United States was like see you, sat down in Mexico and makes good in Mexico and sell them back to the United States.
This is led to a large significant lost of jobs in the manufacturing sector. There we finally got to the root of it. The big thing that certain Presidential candidates are bashing NAFTA because of these lost of jobs it is like oh my god it is destroying our country, destroying our culture everything is going to hell in a hand basket. You cannot blame me for talking like this, I mean the large portion people are going to vote for them could be people that would be working in the manufacturing sector or support the manufacturing sector. But one statistic that should be noted is in between 1993 and 2001 US civilian employment increased by 15 million jobs even though NAFTA was in effect.
It is just something if they are out there I am not taking a side here I am just throwing you the facts all right. The final thing that you should be noted about NAFTA is that since it went to effect trade between United States Canada and Mexico tripled. That is what I know about NAFTA.
This has been another episode of WSYK, what should you know, I am Ethan Block and what should you know.
Transcription by:
Scribe4you Transcription Services