NAFTA explained by avocados. And shoes. 

"Who really thinks about NAFTA every time they pick up an avocado at the grocery store?" Everyone who watched this video. Thanks.

But you can argue this both way. American farmers get corn subsidies and now they sell them to mexico tax free. Many mexican farmers were devestated by this so......it goes both ways.

So many people seem to not understand that avocado is just an analogy for 'Mexican products'

Last I heard, NAFTA also included Canada ... and here, Avocados became more expensive ... because they were shipped though US distribution !

It's the opposite in Canada. When NAFTA (called the FTA before Mexico joined) was signed in 1987 55% of Canadians voted for anti-FTA parties in '88. Liberal leader John Turner even said free trade would make Canada an American colony. Today, both the Liberals and Conservatives support NAFTA passionately, and even the socialist, anti-trade NDP prefers to just not talk about it.

I’ve been watching a bunch of videos about NAFTA trying to understand it. This is the one that really helped. Thanks.

what this video didn't said in the corn example is that the US corn is subsidize and that kind of unfairness in the fields killed thousands of rural jobs and that's why they ended up in usa working as illegals.

A few weeks ago, after a series of Trump's rants against Mexico's supposed 'unfair' trade deal, a group of friends and I decided to see if it was true. We took the task of counting the number of labels and tags with the words 'Made in Mexico' or 'Product of Mexico' in some of the most popular retail stores of NYC. A friend chose Bloomingdales, another one 99c Stores, another one Trader Joe's & WholeFoods and I picked up Macy's. Each about 200 labels per store. After 3 days of scouting in our stores for their labels and tags, we were shocked to see that about 75% of the countries of origin of most clothing, kitchenware, appliances, home decor, cosmetics, and toys were MADE IN CHINA. The following 10% 'Made in the US'. Another 10% more almost equally divided between Taiwan, Thailand, Malaysia, Honduras, El Salvador, Turkey, and Vietnam. The remainders 5%, between Pakistan, India, and Bangladesh, in that order. But the 'Made in Mexico' label was almost nonexistent in most Department Stores. Of about 1000 labels, we only found 3 labels in Macy's, 2 in Bloomingdale's, none in the 99c Stores and about 7 in Trader Joe's and 11 in Whole-Foods (these last two being from Avocadoes and other 'specialty' products -Mexican Avocados, Mexican Beers, Mexican Chillies, etc-). After watching this video I ask: WHERE ARE THOSE 'MEXICAN' PRODUCTS IN THE US part of the 'UNFAIR TRADE' ranted by TRUMP (and FOX, CNBC, etc)? If you have nothing to do, want to have some 'fun' and don't like to be manipulated by the media and your president, I invite you to do your own research. It can shed a great deal of real truth about which country we Americans depend on: CHINA. Ask yourself WHY TRUMP and his PANDERING MEDIA doesn't talk about that? You know why? BECAUSE THEY OWN US. The US Government has a 1.17 TRILLION DOLLARS DEBT to CHINA (as of Jan 2018. 19% of the total US debt to Foreign Countries). Debt that increases every year, every month and every day, since our Government continues borrowing money from the Chinese and only pays interests on the money. See why Mexico is USED as a DISTRACTION to cover up the REAL TRUTH...?! Cheers people. (by the way, the National Debt is of 21 TRILLION DOLLARS, mostly again to, guess who, CHINA).

Resume: Avacado Expert

Most shoes don't come from Mexico they come from China,or Asia, Mexican shoes go to Europe, where consumers prefer quality over price, cars do come from Mexico because cost every to manufacture at the same price whatsoever in the whole world, that is so corporations can keep more money their pockets, but nothing new this is being done since 1960, maybe you just didn't know

Thanks for avocado, Mexico. 🇺🇸 🇲🇽

I was expecting the most biased video ever in favor of NAFTA but I gotta say I'm really pleased by what I saw. Good job

You guys forgot to mention the role that automation plays in why a lot of Americans lost their factory jobs

With no mention of Canada in this report, it can hardly show the true picture.NAFTA is so much more than Mexican supply of fresh produce to U.S. Not really enough info to tell the real story on this complicated agreement. All three trading partners will feel the impact if NAFTA is cancelled. U.S. cars for instance will skyrocket cause most of THAT steel comes from Canada which has just been slammed with huge tariffs.

Who's here because their teacher told them to watch a video ✌🏻👁👄👁✌🏻

Shoes are made in china wtf

The problem is NAFTA created a lot high tech high paying jobs and a booming farm industry. Mean while low paying manufacturing jobs disappeared from the US. And it is these people that were impacted the most. To be honest even if we threw away nafta it won’t change a thing, besides higher prices. Young Americans just doesn’t want to work in factories or mining. Our culture just don’t values trades or factory workers as much as we use to.

Free trade is a win win deal. Yes you will have focused changes in industries, but those industries were only successful because of lack of competition. Those shoe makers? Maybe they don't compete on price? But may they improve their quality. We can't expect high wage low skill jobs in a rich nation. Those voters who want to bring back manufacturing seem to not understand that brining it back brings you back. It's akin to the government stepping in to save tulle fledgling typewriter business. It's moronic.

guys, this is just a video to gain a basic understanding, and frankly I think they did a good job at it. I was reading my newspaper and I was confused, because I was not familiar with nafta, but now I have a basic understanding of what it is and what it did, and why there is re negotiations right now between US and Mexico

you guys oversimplified a really complex issue and failed

God bless the avocado

There was a shoe factory in my town before NAFTA. There was also an air compressor factory, that factory is in Mexico now. I had a career in the Drywall Trade for 30 years, that’s now gone after being overrun by immigrant labor. The whole industry is immigrant dependent now as well as roofers, brick layers, it’s sad, homes used to be built by family owned craftsmen. Who took pride in the homes they built. But over they’re built by profit driven corporations who don’t give 2 shits about anything other than making more profit at whatever cost

Very succinctly illustrated. Well done!

Fantástico explanation about trade; thank you!

What they don't talk about in the video is what happened to the people that lost their jobs. Did they remain permanently unemployed? More than likely, they got another job. They may have had to move to get another job, but they got another job. In fact, most of the time, they got higher-paying jobs.

I hate the things in NAFTA that have less to do with free trade and more to do with allowing cooperations *the right to sue North American countries directly!* (As it curently is under NAFTA, chapter 11.) I'm a proud United Statesian and a proud North American and I like the idea of keeping trade withing North America. We should allow greater trade within the American continent but also develop polices that makes it easer for workers to follow the jobs when they move. A supranational confederacy with the Mexican United States would be my pipe dream solution. (But NEVER an EU style union! We would have to insure that Mexico and the United States can still protect their sovereignty and national identity.)

But...but if it weren't for Nafta we wouldn't have cool 'Avocados From Mexico' SuperBowl commercials. So it's gotta be worth it.

Factory jobs were vital to the South. Those jobs really lifted small southern towns. My town of 8,000 is SC had an extra grocery store. A new shopping center came to town. Car dealerships came in. Those jobs didn’t all go to Mexico. Two years after NAFTA, there were made in Bangladesh shirts. It crushed the economy of the small towns. 2,000 people left my town. I drive through and notice one new business but two left. In South Carolina, it’s horrible. These post-NAFTA towns are crime-ridden. Ross Perot who ran for president against Clinton, said they’re be a large “sucking sound” of jobs leaving. He wasn’t joking.

I'm really glad we have more foods and drinks from other countries. Too bad I can't afford food anymore because I've been laid off from my factory job, I no longer have health insurance and my kids can't go to college. But hey we have 6 more pounds of AVACADOS...

Blame it on the hipsters and the vegans

I live in Lumberton NC. We used to be known for our converse shoe factory. It shut down after nafta. Hundreds lost their jobs and the town never recovered we also lost a Pepsi factory. Today Lumberton is known for the lowest median income per household in the us because the only jobs left pay 7.25 minimum wage or slightly above. I have never eaten an avocado. What would you rather have a vegetable that makes another country money or a job that pays you a living wage?

Wow what a paradox. GREAT JOB!

yeah guise i think it was worth it.

You guys tried to explain it very simple, but it is not that simple. It is true that every single deal has pros and cons. With NAFTA, Americans have access to fresher and cheaper vegetables all year around and it is not all bad for the USA as you guys have been told. Since you guys are using avocados I want to bring up a couple of things that you didnt mentioned. As today the avocado price in Mexico is 66 pesos per kg...which is 3.3383 dllrs per kg, every kilogramo is 2.20462 pounds which give you the price per pound 1.5142 per pound .... every pound might be about 2 avocados....lets say that a pound of avocados at a store might be about 3.00 dlls. Mexicans producers have an income per pound of 1.5 before freight. produce and administrative costs.... Americans traders have a gross income of 3.00 minus the cost of 1.50 = 1.50 before some freight and administrative costs (with no produce cost).... My point.... American traders get to keep their profit share that is a bit bigger then what mexican producers get, plus American freight companies and traders employee people to handle the product. Another thing... since NAFTA started, the american investment grow in Mexico, yeah they have created jobs in almost all type of industries (YEAH Cheap labor), but Mexico doesnt keep all their profit, since they are american companies, all their profit after taxes, comes back to the USA in a way or another. Honestly you guys think the USA had the worst part, but I can assure that there is another side of the story. When NAFTA began, it totally killed the base of the rural mexican economy....yeah USA's CORN hit was too hard the base of Mexico's economy, mexican corn producers could not compete with the american ones. That alone created a huge emigration wave to the USA. It is true that so many companies are opened for bussines in Mexico (Almost every big chain company) and yeah, they created job, but not for the agriculture kind of town, many of that people just couldnt adjust to the change..... Before NAFTA, Mexico was a pretty safe place to live at....after NAFTA and its effects it became a different Mexico.... To me, we were better before....at least the common people were better....Maybe it was a good change for the richer, but it was not the same for most of the rest..... My point.... NAFTA had damaged Mexico as well....so I would not care if they totally cancel it....

I watched this video in my Grade 12 laws class back in 2018. Now it’s 2021 and I only came back to watch this video because I’m eating avocados lol.

Jobs and dignity and technology shift over avocado, I rather eat less avocado

Talk about the Milk producers or corn producers in Us that his main buyer is Mexico and how this industries in Mexico collapse, here in Mexico back in 1994 the fear was can Mexican industries compete with the big industries of Us?..nope they disapear, just small gruop of companies like Bimbo that is the biggest bakery in the world take advantage of TLC (Nafta)..a lot of Mexican companies has gone, Mexico has the worst part of this deal and a i think Nafta need to end.

this video changed my perspective on nafta alot because i used to think nafta was all good and now i know the bad affects it can bring

that's globalization, it also happens in the US having trade with China. Some Americans lose their jobs but in return, more stuff are a lot cheaper for American consumers.

This video does not say it properly . New England had lots of factories and a lot closed up and went to Southern States as the labor was cheaper. Each state makes it's own miminum wage as it does it taxes. What about all those jobs that were lost to southern states.

Nafta need to be more that eh...

gread video, thanks for the upload

The foundation of NAFTA has led to the loss of massive jobs is completely normal in the world of the market. The market creates winners and losers in short term, in this case, is the USA and Mexico. Whoever have cheaper labor cost, higher quality products and lower prices will win the market and dominate its aspect. But in long term, everyone will get benefited. The competition of 2 markets can lower the price and create more quality productions. The USA can lose the jobs of making shoes, but they can specialize in planting corns and the same thing to Mexico buy focus on producing avocados. In short terms, there may be losses, like job losses for American shoemakers and Mexico corns farmers, but in long term, the country can increase trading their focus production, residents from both sides will all be benefited by the lower price and higher quality of the products, including the people who lost their jobs I mentioned. So in short term, people can lose jobs, but in long term, it is a win win for everyone.

Who is your audience for this video? The simplification of the issues suggests you're presenting the arguments to a grade 4 student.

Explanation: FAILED.

Viewing this video changed my perspective of NAFTA by showing me the NAFTA was not all good. Also everything isn't all good. About it.

dope vid thanks!

This video is stupid. Although it is indeed accurate, it tries to explain NAFTA around a few industries. US consumers have indeed benefited from Mexican agricultural imports as well as have Mexican consumers from American Midwestern staples. But to conclude that the agreement has had winners and losers in just these few industries in the United States is child's play. It's far more complicated that that. And as the video correctly points out, without NAFTA most of these manufacturing jobs would have gone to to Asia anyway. We need to have a serios conversation in the United States in regards to whether we will be a manufacturing economy or a service based economy with high tech manufacturing jobs as well. Such a conversation will not take place if we have people like Donald Trump and Bernie Sanders in the center of our national politics.

Trying to make it look 50/50? Lol. Do some basic research, trade is a massive positive.

*What an amazingly oversimplified explanation of tariffs and trade under the NAFTA agreement.*

Quality explanation. Best explains why a unilateral trade agreement with Canada make senses.

I love avocados. so yes this tradeoff is worth it hahah

How about you explain the entire results of NAFTA, not just the US side. Many Mexicans also lost their jobs. NAFTA didn't benefit anyone except large corporations in all 3 countries. NAFTA isn't about borders, it was about making the rich richer, as always.

I think It's also important to mention that there a lot of the industries in Mexico that wen't broke after Nafta, since they couldn't compete with the capital and power of the US products, today the marked is full of American products.

When the problem was with fine print and resulting trade deficits, it needed to get recalibrated. Mexico has also had stagnate economic growth, this wasn't foreseen at the time. We expected Mexico to buy more American products by now. Hasn't met expectations.

The problem wasn't NAFTA, the problem was the " UNION'S "

I don’t like avocados, but, I’d love to have our jobs back.

I really like this video.

Having so many small towns dependent upon 1 industry is extremely risky. And its not just NAFTA that presents the risk, but free market competition in general. The real issue isn't addressing NAFTA but rather addressing single industry towns. NAFTA helped keep inflation and subsequently interest rates at all-time lows...

*Why do you only care if Southerners in the USA lost their jobs and don't talk about Mexicans as human beings too who made jobs and who also deserve to live? By the way, they are making much less money than those very same Southerners and now if you destroy NAFTA you want to take their jobs??? Just because they're Mexican? Why are you so nation centered? Is all you know about humanity the USA???*

now for some education for the uneducated as well as what this left out. jobs (we'll use the shoes for example) were not solely lost to closing shoe stores. if you take the time to dig you will find automation to be the big job killer. this has always been a problem but republican terrorist party tax cuts makes it even more cost effected for business to automate. take a look at st. Reagan era , bush ear and trumpf tax cut. what has happen ? the business get big wind fall money from tax cuts which in turn the automate just a little more. for face it the company profits go up, their no employees to worry with, the machine never takes a sick day and its in the company power to work these machine 24/7 with out overtime pay, of course they wouldn't do that for if they did they could cut prices near in half which wouldn't set well with their greedy natures. so if you're going to spin a yarn tell all the facts.

You know its bad when Trump, Hillary Clinton, and Bernie agree on something

Forgot to mention how globalization is in direct correlation with NAFTA, and how this really *ucked up small, community oriented mom&pop/family businesses in both US and Mexico. Corporate, international businesses come in and push out the small competitor, often killing what took generations to build. This was not limited to shops, agriculture and actually, all businesses were affected. Very few, specific cases can be counted as having a positive outcome because of this phenomenon.

Copying vox much?

Trade is a highly sophisticated discussion. Just like this video illustrates trade can be a gamble. But as a nation becomes more wealthy industries shift from nation to nation, another thing people should notice as a nation becomes more wealthy birth rates drop.

Canada has a lot of wood. US adds tariffs and claim we are dumping. US decides to protect steel industry and adds more tariffs to Canada. But that is not enough, US produces more dairy than it needs, so now it wants to force it down Canadian throats. (Essentially American taxes will be used so that Canadians can get cheaper cheese.) Tell you what, you want us to buy more dairy, then you can buy our wood.

Thank you.

It happened all over New England as factories closed down.

People were not excited about it. Corporations were excited about it. I do not even want to finish watching this.

great production quality, great writing

Nothing got cheaper, the profit margins just got bigger for corporations.

Nafta has made trade more free but is still a long way from being free trade. All the countries involved are guilty of trying to coerce the rules in the their favor.

Made in America shoes lasted for over a year with heavy use. Shoes make in Mexico last a couple of months maybe.

As a global world we are in twine with one another and the governments need to find a balance for everyone

I have to watch this a assignment

Same happened in Mexico, the Mexican agriculture is dead due to nafta and most of the Mexican migrants left the country after losing everything after nafta. Many small companies closed, they were not able to compete to us larger industries.

What people don’t seem to understand is that most of the Jonás lost were due to technological advancements, and we don’t wanna stop technology

If any Canadians are here, you will remember when the FTA was signed our dollar was somewhere around 0.62 cent US. Then all of a sudden we were hit with high interest rates, credit cards went to 24%, personal bank loans were 12-15% mortgage at 8%, our labour was $7.50 Can. while in the US was $5.50 US. Once the Bank of Canada interest rate went through the roof by Mulroney's finance minister Wilson and Bank of Canada's Crow, I think thats his name, our dollar went to $0.96 US and companies and businesses left Canada in droves for the US. Our countries had a very similar economy and lifestyle, why the US got Mexico involve in this free trade is beyond me?? Oh! almost forgot, it took Canada/US a year an a half to work out the agreement while it took only 6 months for Mexico, go figure??

As an economist I can tell you that this video does not draw a bigger picture of trade really works. For example, clothing is 80% cheaper now than pre NAFTA. Hence, people are richer and have more money to spend on other goods, which creates a lot of jobs as well.

Only use the arguments that support your point and ignore those that don't. What we need is transparency on everything or we are getting duped.

Perot said at the time we'd hear a big sucking sound by the jobs leaving, I didn't vote for Clinton.

This is a good overview, but it doesn't factor in the change that happens over time; as demand for product from poorer countries rises, so does demand for workers and hence wages rise. This is happening all over the word, the end result is that living standards around the world become more equal, the cost advantage diminishes, and some production moves back to the wealthier countries.

Its time we stop thinking about our nearest Neighbors, as Foreigners. Regan #YESFORAVOCADOS

WHAT ABOUT PRICE GOUGING BY THESE INDUSTRIES INCLUDING THE GROCERY CHAIN STORES? AVACADOS IN PARTICULAR ARE WAY MORE EXPENSIVE THAN JUSTIFIABLE BY ANY MEASURE !

It would seem that over-priced labor is a major factor. The focus is on how low labor costs are in Mexico . . . without even touching on how outrageously expensive they are in the US. And this because of unions. Unions drive up costs, lower productivity, lower resourcefulness/creativity of individual workers (ie, it's not their job to do anything more than their narrowly-defined job), creates a glut of often silly and counterproductive safety requirements that further restrict productivity PLUS you have an extra layer of hogs at the feeding trough managing the union and monitoring the "cattle" for any deviations, that drives up the costs, lowers productivity, and requires multiple people to do the same task that 1 person does at a non-union factory. (Often more competently, efficiently, with more consideration for the larger picture, and little difference in safety). So . . . is the down-side as much a function of NAFTA . . . as it is of mostly redundant unions rendering American labor so ridiculously non-productive and expensive? All NAFTA did, was cast a global light on the silliness of keeping unions around and ludicrously productive (for very little measurable input) now that labor laws have been established to take care of many of issues unions first rose to combat. BTW, this is the voice of someone who monthly deals with the stark contrast of union and non-union shops and factories, than most Americans deal with a lifetime. Much of this would be fixed by breaking the unions, letting the established labor laws take care of the wanton rule-breakers; and letting natural competition take care of the most competent workers ending up at the jobs that take the best care of them. Right now far too much incompetency is being artificially supported that just can't be fired because of union pressure.

dang it now when i buy avocados i gonna be thinking if NAFTA

How strange, I can't afford avocados.. Guess Canada got the shaft on that one.

Personally I would rather pay a little more for Fruits and veggies grown here. I always read the label and try to get as local as possible. But I don't lose my mind if it came from Mexico or some other place.

People want cheap stuff. But the real price is your job , because factories moves away to use near slave workers.

I live in San Diego County CA. We grow more avocados than any other country in the US. Avocados are available from our county year around. So what you said about imports from Mexico made them available year around finally is not true. Avocados ripen at different times of the year. Haas and Fuerte avocados ripen at opposite times on the year. One thing that is absolutely true is that cheep Mexican avocados have damaged growing them in this area significantly. As far a shoes. When I was in my 20's, 50 years ago almost all shoes I bought were made in the US. You could easily buy shoes of any size. Now almost no shoes are made in the USA. It is very very hard to find any shoes wide enough. New Balance still makes a few shoes here in the US. And New Balance is the only supplier I can find that sells wide sneakers/casual type shoes. If the trade with the US and Mexico was basically in balance it would be fine. But this is not the case. We buy far more from them than they do to us. This damages our economy.

The problem is not trade but under investment in people.

When taxes go up in order for you to get paid the same for a product you have to double the tax increase. Ex. If 17% tax is added to an avocado that is $2 with 17% tax that avocado now the retailer nets $1.66 you have to add 34% to the product to net $2. So now when a customer buys the avocado it's going to cost $2.68. That covers the tax of 17% on both ends. I think that's called Hedging. I could be wrong. But the .68 cents covers one avocado and the next. That's how raising taxes on rich businesses effect the working class.

As a Canadian I say aw dang it

Correct me if im wrong or dont understand this quite right, but NAFTA seemed to be put in place for specific products that america wanted, but was not good at making... so why didnt they just specify the removal of tariffs of certain products like avacados, but keep the tariffs on things like shoes, so we didnt lose all those jobs??

Mrraow who's here for NSDA 2018? I'm so excited but I don't know anything gah

We will renegotiate or terminate it

There is a wealth gap between nations. If every country had no trade barriers the gap would narrow and balance out.

the avocados are green and/or full of big mushy bruises and $2 for a tiny one. It's no staple. It's an incredible luxury if you are not a tv personality.

There is another way to deal with the pain: diversify. If there are innovations in products they will push away similar products that are hanging on to the past. We have the problem whether.company.2.is.in Mexico or the US

We have avocado tree beside out kitchen