The North American Free Trade Agreement (NAFTA)

1345 WordsJun 17, 20186 Pages
The North American Free Trade Agreement (NAFTA), came into effect on January 1, 1994, creating the largest free trade region in the world, generating economic growth and helping to raise the standard of living for the people of all three countries participating. By strengthening the rules and procedures governing trade and investment, the NAFTA has shown to be a great base for adding to Canada’s prosperity and has set a valuable example of the benefits of trade liberalization for the rest of the world. NAFTA was designed with many economic results in mind. Hopes were that not only trade would be easier, cheaper, and easier for all countries involved, but economic wealth and growth would follow. The support for NAFTA was spilt among the…show more content…
That created a lot of pay cheques in Canada.”(Marville) Trade of commodities is not the only thing that has grown in response to NAFTA as Canada also has benefited from an increase of trade in services. In Canada, NAFTA has helped to increase the imports of goods over the past decade in these fields: machinery and equipment, communications equipment, and automotive equipment. This has caused Canada's automotive industry to have a noticeable rise, allowing the economy to increase positively. Exports of goods from Canada have also grown significantly. Example being, in 1998, the increase in Canada's exports to the NAFTA regions was approximately equivalent to the entire value of our exports to Japan and to the 15 nations of the European Union combined. These simple statistics can easily show how the North American Free Trade Agreement has impacted the imports and exports to Canada positively. (Rolf Mirus) Canada has benefited directly from NAFTA as every one in five jobs are in linked to international trade. (GlobeRover) With the savings from tax and tariff extermination between the three NAFTA regions, Canada is able to spend money on hiring more workers - with more workers, Canada receives more income and with more income, Canada receives more profit which in turn leads to a better and stronger economy. Canada has added 4.7 million new jobs since 1993. (Mohammed Aly Sergie) and
Open Document