I was just wondering if anyone could help me answer these. Why was NAFTA started.

What are some good points about it.

What are some bad points about it.

Is it working.

1 Answer

  • 1 decade ago
    Favorite Answer

    It was done in response to the formation of the European Union. America and Canada were concerned that as Europe formed its own trading block with less restrictive trade they would be shut out of the world market (or their role greatly diminished). As a result NAFTA was formed to create their own regional trading block.

    As to good points, I honestly don't know any. I never supported it when it went in. And all you hear about is the bad. In Canada there was issues over softwood lumber, where america unjustly put high taxes on it in violation of NAFTA but refused to remove it, essentially killing the softwood lumber industry. There's issues about natural resource rights (the selling of water, if we sell America water once we open a door that can never be closed). Also there's been issues about Canadian federal law prohibiting things but American companies challenge it under NAFTA.

    As for America, many industries shut down and relocated to Mexico as it was cheaper. Some feel this has only helped keep Mexico impoverished as NAFTA makes it difficult to raise their economic situation.

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