North American Free Trade Agreement

Under the North American free trade agreement (NAFTA), Mexico truckers were to have been allowed to drive their trucks directly into the United States and avoid the costly and time-consuming border unloading that took place prior to the agreement. However, fearing job losses in the industry, the U.S. Teamster union rigorously opposed the legislation. Although the group ultimately lost its fight, the United States still did not give Mexican truckers freedom to deliver their goods, prompting Mexico to institute retaliatory measures affecting $2.4 billion of goods exported from the United States.

Why did the United States respond to the teamsters? Why are those affected by Mexico's retaliatory tariffs not lobbying congress for relief? Should the United States protect the teamsters at the expense of agricultural in California and Washington?

Solution:

Mexicans does not have the clear cut truck road map to US. The trucking was initially allowed to the Mexicans, but with the increasing safety threats to the country, the direct truck transaction has been stopped by US which has greatly affected the Mexicans. With this the Mexicans has imposed tariff on all the agricultural products that are imported by US. The country has imposed about 20% of tariff. With this the trade is going to highly affected and will effect exports by 20% tariff.

According to the US government, it is important for them to protect teamsters at any cost as the same is affects the safety of the country and its citizens. But the implementation of this is going to effect the exports of the country which will overall effect the economy of the country to a great extent. With a focus on this the country should reopen the borders.

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