Activity

Activity objective

To analyze the political implications of tariffs and regulations on trade agreements.

Instructions

Read the following case: Assignment 3.

Now answer these four questions:

1. What are the potential economic benefits of the trucking provisions in the NAFTA? Whom will profit? Who might end up losing?
   
2. What do you think that motivated the American Teamsters to object the trucking provisions of NAFTA? Are these objections fair? Why did the US Congress initially align itself with the Teamsters? Do you think this was a diplomatic failure for Mexico?
   
3. Did it make sense for the United States to bear the costs of punitive tariffs as allowed for under NAFTA, instead of letting Mexican trucks enter the country? What was the official position adopted by the Mexican government? Was a retaliation the right answer?
4. Why do you think the Obama administration brokered a deal with Mexico to finally allow Mexican truck drivers to access the United States? As a Mexican citizen, do you find that deal reasonable?

Checklist

• The student reads the case analysis: NAFTA, trucking, and Mexican economic life.          
• The student answers the questions.