A major criticism of NAFTA by American labor unions was that it would lead to:
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Correct answer: The 'outsourcing' of manufacturing jobs to Mexico where labor was cheaper
Labor leaders feared that the lack of tariffs would incentivize American companies to move factories to Mexico to take advantage of lower wages. This concern became a central theme in the political debate surrounding the agreement.
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More NAFTA and North American Trade questions
- The concept of 'Maquiladoras' became a central part of the NAFTA era, referring to:
- Which 1992 Independent presidential candidate famously warned of a 'giant sucking sound' caused by NAFTA?
- NAFTA was unique at the time because it was the first major trade agreement to link:
- What were the 'Side Agreements' added to NAFTA during the Clinton administration intended to address?
- How did NAFTA affect the U.S. agricultural sector, particularly regarding corn?
- In terms of North American trade policy, what is the 'Rules of Origin' provision?