Select one of the following roles: American factory owner, Environmental Protection Agency (EPA) agent, and Mexican worker. Then, list the pros and cons of NAFTA for your particular role.
Next, reevaluate with USMCA. Conduct an internet safe search to learn about the differences between NAFTA and USMCA. Then, evaluate the pros and cons of USMCA for your role. Identify similarities and differences between NAFTA and USMCA as they relate to your role.
Write a two-paragraph long opinion piece about NAFTA and USMCA from the perspective of your character and post this opinion piece to the discussion board.
As an American factory owner, the pros of NAFTA included access to a larger market in Mexico and Canada, reduced tariffs on goods exported to those countries, and cheaper prices for imported materials. This allowed for increased production, expansion of the business, and ultimately higher profits. However, the cons included competition from cheaper Mexican labor, resulting in pressure to lower wages for American workers and potential job losses in some industries.
With USMCA, the pros for an American factory owner still include access to a larger market with Mexico and Canada, but now there are stricter labor and environmental regulations that may help level the playing field for American workers. Additionally, there are provisions to increase the percentage of a vehicle's content that must be made in North America in order to qualify for tariff-free treatment, which could benefit American manufacturers. However, the cons may include the increased costs of compliance with the new regulations and higher wages for workers, which could potentially cut into profits.
From the perspective of an American factory owner, NAFTA and USMCA both offer opportunities for growth and access to a larger market, but USMCA may provide better protection for American workers and industries. While there are some similarities between the two agreements, such as the focus on trade relationships between the US, Mexico, and Canada, the stricter regulations in USMCA may make it more favorable for American manufacturers in the long run.