NAFTA Costing As of January 1, 1994, the North American Free Trade Agreement (NAFTA) was adopted as a new dream, designed to improve economies and manufacturing of goods for the United States, Canada and Mexico. Since its conception, it has been, and remains today, a controversy over “potential magnitude and predictive outcomes” versus the actual facts and figures witnessed. Now, just five years later, many agree that this dream has turned into a nightmare for those on all sides of the border. The harmful and far-reaching effects of this agreement have been felt, especially by small business owners and lower-middle-class individual workers in the United States. I will focus on these points, but I must also mention the plight of our nation's neighbors, who share the consequences of this compact. NAFTA is on track to mark a decline in the American economy, a rise in unemployment, and a general deterioration in the morale of the American workforce. The glorious NAFTA theory certainly seemed innocent enough. Indeed, it painted a beautiful picture of North American countries holding hands in a union destined for excellence. Together, they would fight for common wealth and, for each, a recovery of imports and exports; thus improving everyone's economic traditions. Free trade (elimination of tariffs) between countries and the expansion of cross-border sales were the main goals of the agreement, and each party had something to gain from this process (Online, 1). Canada, which imports large quantities of agricultural products, welcomed the elimination of tariffs on goods brought into its country. For the United States, the opportunities were many. Expanding trade meant more products needed, so more jobs would be created to employ people. It also allowed manufacturers to establish themselves anywhere in North America without any foreign exchange penalties. This is what made it possible to abuse cheap labor in Mexico to make American products and then resell them to Americans for the same price. Mexico also had bright hopes for the future. They seemed to have been granted a more respectable position in international trade. Furthermore, it could also provide more jobs for their poverty-stricken audience (Creations, 1-5). Overall, these merits looked great on paper and gained a lot of support from both Democrats and Republicans, allowing their passage in both the Senate and the House of Representatives. His only opposition was primarily the unions, who knew the effects of cheaper Mexican labor; AND