The Development of Free Trade - Essay Example

Free trade Free trade is both a governance and business management function in which stakeholders develop effective mechanisms that permit unrestricted import and export of goods from their countries to the neighboring countries without restrictions. The growth of international trade and rapid development of economies relies on the types of business relationship a country develop with her neighbors. Free trade is therefore a contentious issue between Mexico and her neighbors including the United States and Canada. The three countries have conflicting interests in the development of international trade in the region thereby validating the contradicting signs that the three countries have given. The development of free trade in the region is vital in the development of the three economies since most of the problems in the region such as human and drug trafficking affect all the countries. Most of the illegal immigrants setting in both the United States and Canada are Mexican nationals who enter such countries with the hopes of getting jobs. The rising level of unemployment in Mexico is a major cause of the immigration crisis in the region. Such immigrants take advantage of the weak immigration laws in both the United States and in Canada to settle in such territories thereby contributing to crime among other social vices in such territories. The adoption of free trade policy in the region would open the boundaries of the three countries to invest indiscriminately thereby promote the economic development in each country a feature that would curb the immigration menace in the region and contribute to the development of a peaceful and stable region with minimal cases of illegal immigrants. The labor costs in Mexico are lower than in the other two countries. Most American and Mexican companies therefore wish to develop their manufacturing plants in Mexico. However, the existing laws governing international trade in the region curtails such efforts. This curbs the economic development of Mexico while worsening the social challenges the other two developed economies face. Illegal immigrants cannot obtain any social security service in the United States a feature that compels such individuals to live in the streets peddling drugs and perpetuating other crimes and social vices such as robbery and prostitution. It thus becomes imperative that the concerned parties understand the essence of developing a free trade area in the region. An economy is a self-sustaining cycle in which the performance of an industry influences the outcome of the general economy. The same applies to governance. The lack of effective immigration laws and corrupt officials in the border has perpetuated the thriving human and drug trafficking within the border of the United States, Canada and Mexico. The three governments must therefore work in unison with the aim of curbing the social and economic menace and foster equal economic development in the three countries. The development of effective immigration laws coupled with the initiation of a free trade are in the region would help curb the manifestation of some of the social problems in the region. Additionally, such an environment would result in economic development in the three countries since manufacturers in Canada and America would enjoy lower costs of production while the Mexican economy would benefit from increased employment opportunities. This will therefore reduce the rate of drug and human trafficking in the region thereby providing a realistic solution to the countries’ major social challenges. Among the major challenges to the development of a free trade area between Mexico and her southern neighbors has been President Barack Obama’s effort to increase the magnitude of such trade by involving other key players. The American president has concentrated on the development of the twelve nations-trans Pacific Partnership that would include both Mexico and Canada. The president argues that such a measure would increase the scope of doing business thereby increasing investment destinations to the entrepreneurs existing in the members countries. While his argument is realistic and presents several opportunities to the member countries, the process involved in the creation of such an agreement is hectic and requires more time (Ronald 01). The time that the stakeholders would spend planning and polishing the agreement is a viable time within which the problems between Mexico and her immediate neighbors worsen. This implies that the president should priorities American problems and concentrate on the immediate solutions that will consequently provide more realistic solutions to the social and economic problems of the country. Additionally, economists argue that the development of NAFTA, the 12 nation Trans Pacific Partnership, will foster the development of inequality thereby failing to provide realistic social and economic solutions to the three countries in the region. The United States is the most developed of the three. It therefore is a preferred destination for most investors, developing a free trade area expanding twelve nations will only benefit the united states among other more developed economies such as Canada thereby failing to provide realistic solutions to the social problems in Mexico most of which spill over to both the United States and the Mexico. This validates the need to provide an immediate solution to the problem existing among the three countries before extending the area to the twelve or more member states that the president wishes to include in the deal. The chosen concept, free trade, has direct influence to people’s lives since it provides an effective platform to discuss the numerous social and economic problems in Mexico, the United states and in Canada. The concept discusses the possible and realistic ways of solving the drug and human trafficking menace in the region. The two are serious social vices that the government of the three countries have invested billions of dollars to solve but have not succeeded in doing so owing to the complexity of the problems. The united states of example experience increased crime rates with such vices as prostitution increasing in the country. The illegal immigrants cannot access adequate health services. Furthermore, they lack appropriate identification documents. Such features make investigation of the crimes more complicated while making the population susceptible to different diseases. Discussing the concept of free trade therefore provides the government with appropriate ways of solving some of the problems. By opening up the three economies and appreciating integration among them, the three countries open up their territories for increased economic activities thereby increasing employment rates in the countries a feature that presents lasting solutions to the social and economic problems in the region. The concerned parties must appreciate dialogue and exhaust all the possible aspects of the concept in order to develop an appropriate stricture that will sustain such a trade while appreciating the need for stringent immigration laws in order to monitor the movement of people as they enjoy the free trade area. This makes governance easier for the three governance since they can account for their citizens thereby solve most of the social problems. Emotions become heighten when discussing the concept of free trade, the fact that the concept presents an opportunity for the three countries among many others in the world to solve most of their social and economic vices makes the concept relevant to different societies. In most cases, strong economies suffer face increased social vices as people from the poor economies migrate into such countries with the view of leading better lives. Such misconceptions have facilitated mass movement of immigrants from Mexico to both Canada and the United States. Once there, the people face myriad social challenges including the inability to get employment owing to the lack of appropriate identification papers among many others. The concept therefore explains the rising crime and unemployment rates in the United States and Canada. Free trade plays integral roles in everyday life; the concept explains the development of trade in the region. An economy relies on the developmnet of trade among the population; free trade therefore offers investors with opportunities to look for markets beyond the borders of the country. An increased market motivates employers to increase the capacity of their companies thereby providing more employment opportunities to the populace. Free trade has direct influence on the rate of unemployment in a region; the concept is a major incentive to investors who will consequently enjoy favorable market features in different countries within the region. Work cited Ronald Brownstein. Why Whats Good for Mexico Is Good for Us. National Journal, February 20, 2014. Print. Read More