Impact of NAFTA on US Trade and Economy

3073 Words12 Pages
Abstract The North American Free Trade Agreement (NAFTA) has boosted the US economy growth by introducing free trade with Mexico and Canada. Since, after the implementation of NAFTA in 1994, US have experienced several favourable outcomes. The imports and exports of agricultural goods, electronic equipment, machinery, automobiles, drugs, oil and minerals have been increased among the NAFTA countries thus giving rise to total profits. The agreement has also contributed in eliminating the unemployment in United States and has controlled inflation rates. NAFTA bloc has also created number of job opportunities in the country. Moreover, the consumer prices have been decreased and income levels of US citizens have been raised due to reduced tariffs and taxes. This paper will discuss the facts and figures since 1993 and show how United States has achieved benefits with NAFTA agreement. Introduction The North American Free Trade Agreement (NAFTA) is an international agreement between Canada, America and Mexico. This agreement took effect in January 1994 and was signed by President Bill Clinton. This agreement brought great changes in trade volumes and open new opportunities for millions of labours. Later, in January 2008 according to the schedule all duties and restrictions were eliminated. About 45,000 tariffs were eliminated in 1994 and only 3000 were left until 1999. NAFTA implementation was highly supported by majority analysts and investors in United States. Though, NAFTA
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