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Nafta Pros And Cons

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The North American Free Trade Agreement (NAFTA) is a trade agreement between Canada, the United States and Mexico. This treaty came into effect on January 1, 1994 and it granted free trade throughout North America. Canada, USA and Mexico became the largest free market in the world. Free trade between Canada and America existed since 1989 with the CFTA (Canadian Free Trade Agreement). The reason NAFTA was created was to remove tariff barriers on agricultural, manufacturing, and services, to remove investment restrictions and to protect intellectual property rights. The economies of Canada, USA and Mexico were booming. The North American Free Trade Agreement has been beneficial for Canada. Eliminating tariffs from products entering Canada from the US or Mexico helped increase trade between these three countries. Prior to NAFTA, tariffs in Mexico reached up to 25% and were 2.5 times US tariff rates. Without it, international trade rules would have allowed Mexico to raise their tariffs up to 50%. Luckily, NAFTA gradually eliminated tariffs on products leaving these countries over the course of 15 years. In 1999, 65% of products leaving these countries were tariff free. By January 1, 2008, almost all foreign products entering the countries were tariff free. Thanks to NAFTA, Canada and the US …show more content…

About 1 in 5 jobs in Canada is in the trade sector. This means NAFTA is responsible for one fifth of the jobs in Canada. More jobs are being created because Canada can hire more workers with money from tax savings and not paying tariffs on products. The workers that are hired generate more income which results in a higher profit for Canada. The more money the workers make, the more money Canada has, the more workers are hired, the more jobs are created. The cycle of hiring more workers and making more money continues to build up our economy making us a wealthier and better

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