Why would a developing nation agree to a free trade agreement like NAFTA or CAFTA with the US?

Question

Aside from employment opportunities, what are the other benefits that a developing country, like many in Latin America, mught get by joining one of these agreements? Oftentimes the availability to get IMF and World Bank funds is tied to free trade agreement memebership, but is this enough of an incentive to join these agreements? It seems like a tough trade - the developing nations watch domestic industries destroyed by US dumping and many other harmful effects. And for what?

Answer 1

Listen to the truth: THERE ARE NO BENEFITS. If there were, why are there 80 countries today with less GDP than they had 10 years ago when the NAFTA ordeal began (followed by the recent CAFTA)? The only reason these countries agree with these trade deals is to appease its political donor class. These trade deals literally make the rich wealthier, and the destitute more poor.

NAFTA and CAFTA left workers worse off, they get paid less and have less opportunities to get ahead. Its the sad truth, and the media is so pro-free-trade that they won't touch this.

Answer 2

You don't appear to be too well-informed about your question. I would suggest you look at the NAFTA agreement which, for a period of time, was a Godsend for Mexico and continues to this day to be more advantagous for Mexico than for the US. It would continue to be one for a very long time if Mexico had taken full advantage of it in the same way as Canada did with the necessary investments in infrastructure to move goods to and from the border areas..

In fact, of the 30 or 31 free trade agreements which Mexico has made with both developed and underdeveloped nations, only one has been positive for Mexico. Which one? You guessed it!

Answer 3

NAFTA has create a commerce creation. traders can locate the wonderful region for his or her products in member international places. they have relocated their investment to the main inexpensive u . s . a .. this could impression employment shape. because of the fact the labors are no longer approved to mobilize around the international places, there'll be some loss and benefit.

Answer 4

A THIRD WORLD COUNTRY IS LEFT OUT OF THE GAME OF COMERCE & BANKING IF THEY DON'T AGREE TO SOME TYPE OF FORMAL AGREEMENT THAT ALLOWS THEM TO BE CONSIDERED AS PARTNERS IN DEVELOPING MARKETS FOR ALL CONCERNED...THE RISK OF NOT JOINING -IN IS FAR, FAR GREATER THAN NOT....BANKS WILL ALLOW CERTAIN LOANS THAT WOULD NEVER BE CONSIDERED BEFORE-----THE LARGER COUNTRY WILL LEAN TOWARD IMPORTS OF GOODS FROM THE LESSER COUNTRY , IT BECOMES A COVENANT RATHER THAN JUST A SIMPLE AGREEMENT---FROM BIBLICAL TIMES ON A COVENANT ALLOWED AGREEMENTS THAT THE MAJOR WOULD NOT CROSS A LINE AND TAKE ABSOLUTE POSSESSION OF THE MINOR--SUCH AS BETWEEN A KING AND SMALL GROUP OF VASSELS ....THE SAME HOLDS TRUE IN THIS CASE --MAINLY PROTECTED BY THE PRESS THAT WOULD EXPOSE ANY DASTARDLY HANDLING OF THE LESSER NATION BY THE GREATER....THEN THE MAJOR RISKS ACCUSATIONS FROM OTHER MAJOR & MINOR NATIONS--WORLD OPINION REIGNS---DUE TO AN AGRESSIVE INTERNATIONAL PRESS....ALL IN ALL IT'S A GOOD DEAL FOR THE LESSER TO IMPROVE IT'S WEALTH & CHARACTER OF COMPUCTION TO DELIVER AT ALL COSTS.....THEN VIEWED IN HIGHER RESPECT WHICH LEADS TO FUTURE ORDERS & YIELDS THEN MORE WEALTH BY GUARANTEEING MORE EMPLOYMENT....READ " THE WEALTH OF NATIONS"......

Answer 5

The leaders make money,its just likke the ones everywhere, Proffesional Politician is the most secure and fastest way to get rich.
Freedom use to be worth dyeing for. But this junk we are underr now is just Facism in a suit and tie rather than jack boots.