The downsides of NAFTA have caused a lot of arguments among those involved.

What NAFTA Doesn’t Do

Although NAFTA has been touted as one of the most important alterations to North American trade, there are still instances of NAFTA weaknesses that cannot be avoided, as with any legislation. These weaknesses are as follows:

The primary downside of NAFTA is the fact that it enables large corporations that are only concerned with profit to appeal to the workforce and resources of neighboring countries in an effort to circumvent domestic expenses. This invariably weakens the domestic economy, resulting in lost jobs, lower wages, and the acceptance of less worker rights in exchange for job security.

Another downside of NAFTA is the reduced sovereignty of the three nations, resulting in an aggregate economy. While some may consider this a positive aspect of NAFTA, it can also mean that weaker economies will reduce the strength of its neighboring economies. Furthermore, it creates disparities between varying market sizes. For example, if a market were weaker in Canada, and thus contained only small businesses, this market will further weaken with the integration of a country with a stronger presence of that particular market that includes larger business entities.

Overall, these downsides may reduce the positive impact of NAFTA, but it would be hard to prove that it completely eliminates it.