The Benefits of NAFTA and CAFTA Essay Example | Topics and Well Written Essays - 1000 words

The Benefits of NAFTA and CAFTA - Essay ExampleFarmers, workers and manufacturers benefit from the reduction of coercive and discriminatory quite a little rules, while consumers enjoy lower prices and more choices. By strengthening the rules and procedures governing allot and investment on this continent, the NAFTA has allowed address and investment flows in North America to skyrocket. According to figures of the International fiscal Fund, total trade among the three NAFTA countries has more than doubled, passing from US$306 billion in 1993 to almost US$621 billion in 2002. Thats US$1.2 million every minute. NAFTA has been a huge success for the U.S. and its NAFTA partners. It has helped Americans work smarter, hit more and sum up purchasing power. It has contributed to more trade, higher productivity, better jobs, and higher wages. In ten old age of NAFTA, total trade among the three countries has more than doubled, from $306 billion to $621 billion in 2003. Thats $1.7 billi on in trade every day. U.S. exports to Canada and Mexico grew from $142 billion to $263 billion in NAFTAs first ten years. And Mexican exports to the U.S. grew 242 percent, improving lives and reducing exiguity in Mexico.The DR-CAFTA, the treaty originally encompassed the United States and the Central American countries Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Then in 2005, the Dominican Republic joined the negotiations, and treaty became known as DR-CAFTA. The CAFTA-DR is the second largest U.S. export market in Latin America, behind only Mexico, buying more than $16 billion in U.S. exports. Successful CAFTA-DR carrying out is critical to the broader U.S. policy goals for the Americas of strengthening democratic governance, expanding economic opportunity, and investing in the great unwashed. CAFTA would require market loosening for the majority of goods and services in Central America. In return, the U.S. has promised increased market access for certain sector s in Central America, including textiles and a limited increase in sugar quotas. To add, CAFTA is important to the DR-CAFTA countries own businesses, enabling them to increase productivity and increasing the skills of millions of workers as new foreign businesses and new technologies enter their economies. With higher skills, workers will be more valuable and earn more money, increasing their living standards. As living standards rise and people enjoy better lives, their interest in preserving these benefits also increases. Because they have more to lose from a crisis, they extend to to preserve peace and stability. As a result, the likelihood of civil conflict decreases. At the same time, the improve domestic situation reduces the incentives to leave home in search of a better life elsewhere.According to the brass instrument for Economic Cooperation and Development (1997) more workers in more firms in more countries derive their livelihood from cross-border trade and investment activity. Trade and investment have become major engines of growth in developed and growing countries alike. The volume of world merchandise trade is today about sixteen times what it was in 1950, a period during which the value of world output increased by a factor of 5.5. The period since 1950 saying a near doubling, from 8 to 15 per cent, of the ratio of world merchandise exports to global production. Most peculiar has been the