The North American Free Trade Agreement

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.

One of the concerns was o U.S jobs was shifted to Mexico so U.S workers had suffered from NAFTA. This effect may be difficult to quantify, but influence on bargaining power of U.S workers. If firm could step to move jobs to Mexico if labor unions did not comply with their demands. Some U.S. industries have been benefitted to raise demand for U.S. products in Mexico or Canada, creating new jobs while other industries have job losses by NAFTA. It is quite difficult to quantify data on the effects of NAFTA on sector wise because of the other economic factors that influence trade and employment levels in countries. For example: The devaluation of the Mexican unit of money resulted lower Mexican wages standard and norms, which may be taken as source of Incentive for U.S. companies to have low production costs with cheap labor. One can say that trade-related employment due to NAFTA from the lowering of trade barriers, and from low economic conditions in Mexico and for United States to influence in increase of investment decisions and rise demand for

3.___ The North American Free Trade Agreement (NAFTA) is advantageous for Canada because manufacturing jobs have been sent to Mexico where labour is cheaper.

With trade increasing in Canada, on the one hand, it increases the demand for more people to do the work, which means that more people get a job and have more money to spend on goods that are imported from other countries. On the other hand, Canadian companies in different divisions from automotive, to energy, to agriculture(www.theglobeandmail.com) have to hire more people that are able to work because there are more products that should people to deal with between trade and with Canadian companies are becoming more profitable, it has more money to hire more people. For example, jobs are increased in the area of transportation in order to get the products to the stores. According to the fact, the agreement has helped produce over 1.8 million new jobs for Canadians at first 5 years of NAFTAs existence (www.nafta.ca). However, NAFTA makes huge damage for the Canadian automotive industry because with a stronger automotive union, every year will require higher wages, which slows process and makes it inflexible and expensive (www.international.gc.ca). Although NAFTA hurts the auto industry in Canada, it brings more benefits to Canada because it decrease the unemployment and improve the Canadian economy and condition of

First of all, the introduction of Goods and Services Tax by Mulroney built the foundation for eliminating federal deficit, which occurs when the government spends more money than it makes (Parker 22). Deficit increased the selling off of the capital assets in Canada to finance the purchases of slowly diminishing goods and services, which undermined future production and raised unemployment rates and inflation (Swatsky 309). Not only did the introduction of GST overcame deficit by a significant amount, it also proved to be an important source of generating revenues, improving the competitive position of Canada’s economy in the world and acting as an efficient way for managing the country (Good and Bad sides of GST). This could be justified though the fact that when Mulroney introduced the GST, the revenues grew by one-third, and GDP by 1.2%. Although it was not enough to stop deficit at first, it did slow it down and eventually hauled it (Coyne). But at the same time, his attempt to stop deficit limited his ability to deliver the promises he made in terms of services and infrastructures.(Info base Learning). Secondly, the signing off the Free Trade Agreement with United States and North American Free Trade Agreement with the addition of Mexico came as a great economic contribution to Canadian history as it marked the creation of the largest free trade region in the world. With the elimination of tariff and non-tariff barriers, NAFTA opened gates for Canada towards economic prosperity and growth. With no imposed taxes, NAFTA provided Canada access to the wider range of Mexican and U.S markets, expanding Canada’s productivity and allowed Canada to attract more U.S investors, firms and companies to Canada, to invest in the wide variety of natural resources, and. This also led to a huge burst in job opportunities in the trade and service sectors (Ties with

The North American Free Trade Agreement, commonly known as the NAFTA, is a trade agreement between the United States, Canada and Mexico launched to enable North America to become more competitive in the global marketplace (Amadeo, 2011). The NAFTA is regarded as “one of the most successful trade agreements in history” for its impact on increases in agricultural trade and investment among the three contracting nations (North American Free Trade Agreement, 2011). Supporters and opponents of the NAFTA have argued the effects of the agreement on participating nations since its inception; yet, close examination proves that NAFTA has had a relatively positive impact on the economies of the United States, Canada, and Mexico.

The question that everyone is asking is what is The North American Free Trade Agreement? Well the North American Free Trade Agreement better known as NAFTA is an agreement signed by Canada, Mexico, and the United States creating a trilateral trade bloc in North America. Studies say that it has helped the growing in the U.S. with the rest of the world. NAFTA?s pros and cons are hotly debated. Critics point to three main disadvantages of NAFTA.

There are many good and bad about the NAFTA. I do believe that it has been effective in some cases it has increased some revenue for some of the goods that come from other countries. one example the United states has imported oil for less than what it use to be. In some cases, some food can be transported for less and reducing some of the grocery bills. NAFTA, as most political assertions, has it's great and awful viewpoints. It started, between the three North American nations The United States, Mexico, and Canada. Those that made this arrangement trusted that by disposing of the duty and non-levy hindrances, it would expand exchange, make employments, and lower costs between the united states, Mexico, and Canada

The North American Free Trade Agreement or as its most commonly known NAFTA “is a comprehensive rules-based agreement between the United States, Canada, and Mexico”, that came into effect on January 1,1994. All three countries signed it in December of 1992; later on November of 1993 it was ratified by the United States congress. NAFTA was not only used in cutting down on tariffs between both countries but it also help deal with issues such as Transportation, Border Issues, and Environmental Issues between these two countries. NAFTA changed some tariffs immediately and within fifteen years other tariffs will fall to zero. NAFTA was not created to just lower tariffs it was also created to open protected sectors in agriculture, energy,

The benefits of a neoliberal approach are clearly seen when looking at the benefit to Canada’s economy. Through NAFTA, the North American GDP doubled, and the standard of living was raised alongside this (Ciappara). As such, Canada should pursue other trade deals in the aftermath of NAFTA’s collapse, so that the benefits of free

The North American Free Trade Agreement (NAFTA) facilitates the free flow of goods and services between Canada, The United States and Mexico. This allows ALPES to move into untapped markets in three countries rather than just its base country of Mexico. This would also increase profits substantially due to an increasing market demand.

Clearly NAFTA has led to widespread job loss, with more than 200,000 U.S. workers certified as NAFTA casualties under just one narrow government program. Since the 1970's, there has been a steady trickle of

     There are various trade agreements the United States have with many other countries and I will do a brief overview of a few of them. The most noticeable one is the North American Free Trade Agreement, which include the United States, Mexico, and Canada. This agreement was constructed and approved in January of 1992 and formed the largest free trade area. NAFTA eliminated and reduce tariffs and non-tariff barriers in addition to comprehensive provisions in the way trade was conducted between these countries.

Being the world 's largest economy, the United States is also largest exporter and importer of goods and services. American economic growth relies heavily on trade. According to a recent report on NAFTA, “Since 1992, nearly 20 million new jobs have been created in the U.S., in part due to the 1994 NAFTA agreement. Total trade between the NAFTA partners -- the U.S., Canada, and Mexico -- rose from $293 billion in 1993 to more than $475 billion in 1997, and has increased since. ” (Bowman, Free Trade). It is obvious evidence that international trade is beneficial to the US economy, at least in the 1990s.

barriers were eliminated within ten years of the Act. A national treatment for member countries was adopted to liberalize trade services and investments. Performance requirements were removed, and dispute mechanism for investment conflicts were created. Protectionist issues emerged regarding progress in eliminating anti-dumping policies and persistent administered protection frameworks.5NAFTA did not substantially liberalize trade amongst all three counties in the agreement and fell short of its high expectations but it has certainly been a beneficial liberalizing force overall for Canadians. The North American Free Trade Agreement has been beneficial for Canada due its strengthening of relations with the United States, and increasing economic growth in our nation.