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Pros and cons of US-Mexico trade would be as follows:

Pros

  • Greater trade increases economic output, especially on export-related industries such as agriculture and automotive.
  • This in turn means more jobs on the aforementioned industries.
  • It also means more Foreign Direct Investment for both countries, especially on industries that are part of the same value chain (i.e. electronics and automotive).
  • It lowers prices. For instance, bananas are grown in Mexico and cost less due to the logistics involved, as it would be much more expensive to grow them within the United States: it can be done, but only in greenhouses.

Cons

  • Mexican farmers cannot compete against heavily subsidized American agricultural products, which puts them out of business.
  • This in turn means greater illegal Immigration into the United States by the aforementioned farmers.
  • U.S. companies that leverage lower wages and laxer environmental laws, pollute the Mexican environment while providing substandard jobs to Mexican workers, who are often exploited in quasi-sweatshops. Also, this allows them to threaten American unions to prevent workers from asking for better work conditions and salaries back home (i.e. these companies threaten to move to Mexico if their demands are not met, with the consequent loss of American jobs).
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7y ago

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