Nafta And The American Free Trade Agreement

1253 Words Jan 17th, 2015 6 Pages
On January 1st, 1994, Canada, the United States of America, and Mexico had signed a free trade agreement, under the name - the North American Free Trade Agreement (NAFTA). This Free Trade Agreement was created to achieve its goal of eliminating barriers to trade and investment between Canada, Mexico and the United States of America. However, the question that politicians and economists of our nation are facing is whether Canada should remain in NAFTA with its partners, United States and Mexico. Despite a multitude of benefits that NAFTA is said to have by our political elites, 20 years later, it is evident the agreement has been counterproductive; which is evident by the slow move by Canadian manufacturers to Mexico, significant losses in our agricultural sector and widening the income gap within our society. First of all, joining NAFTA has proven to be beneficial to the Canadian economy as many jobs have been created for Canadians nationwide. Overall as a country, the agreement has helped create over 4.3 million jobs in the last 15 years. Furthermore, after signing the agreement, NAFTA has helped in dropping Canada’s unemployment rate from 11.4% in 1993 to 7.2% in 2012. Moreover, after having minimized tariffs and barriers to trade, NAFTA’s impact on Canada has resulted in one in five jobs in Canada being directly related to trade. Thus, the impact of having joined NAFTA has resulted in the creation of numerous jobs for Canadians and helping our economy prosper.
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