Forex Information

Free trade zones, a trade deal, stock market news and a free trade agreement are all important terms that you need to know something about. Though each are different, they all impact your daily life; from the supermarket food you buy, to the gas that powers your car, to the jeans we wear each day and even the toys that come in our children's Happy Meals from McDonald's. Even your workplace is influenced by all of these things.

The definition of free is trade without restrictions. That is the premise the North American Free Trade Agreement is based upon, and therefore dictates how it operates. It is between Mexico, Canada and the United States of America. These three countries are allowed to trade material goods without the tariffs or taxes that another country will face if a trade deal has not been forged. But controversies have arisen about NAFTA.

A trade deal was worked out between Mexico, Canada and the United States. The United States and Canada agreed not to charge or change the pricing of goods produced in Mexico and then sold in either the U.S. or Canada. The problem is that goods are cheaper to produce in Mexico because labor wages are so incredibly low. Many U.S. and Canadian companies are relocating their factories to Mexico because the labor laws are so lax. What does this do to U.S. and Canadian jobs? Well, it causes massive lay offs and wages to fall, which in turn, negatively affects the economy.

Do your part in keeping a Free Trade Agreement on equal terms by protesting against companies relocating to countries with lax labor laws and poor working conditions. If you take a stand and only buy home-produced items, then it will send a message to the government, that trade deal or not, you want to keep jobs and industries at home.

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