The Nafta Agreement Affects Our Trade With

The economic growth that followed NAFTA was not impressive in any of the countries involved. The United States and Canada have suffered greatly from several economic recessions, including the Great Recession of 2007-09, which overshadowed all the positive effects that NAFTA could have had. Mexico`s gross domestic product (GDP) grew at a slower pace compared to other Latin American countries such as Brazil and Chile, and its per-person income growth was not significant, although there was an expansion of the middle class in the years following NAFTA. When Bill Clinton signed the nafta law in 1993, he said the trade agreement signed “jobs.” U.S. jobs and well-paying American jobs.┬áHis independent opponent in the 1992 elections, Ross Perot, warned that fleeing jobs across the southern border would create a “great wake.” Agriculture, in particular, has seen a boost. Canada is the largest importer of U.S. agricultural products, and Canadian agricultural trade with the United States has more than tripled since 1994, as has Canada`s overall agricultural exports to NAFTA partners. What is positive is that overall trade between the three NAFTA partners – the United States, Canada and Mexico – has increased sharply over the course of the pact`s history, from $290 billion in 1993 to more than $1 trillion in 2016. Cross-border investment has also increased sharply in recent years, with the stock of foreign direct investment in Mexico increasing from $15 billion to more than $107.8 billion in 2014. In terms of job growth, according to the U.S. Chamber of Commerce, six million U.S. jobs depend on U.S.

trade with Mexico, an electricity that has been greatly facilitated by NAFTA, which has helped eliminate costly customs and non-tariff barriers. NAFTA has also enabled multi-layered integration of the U.S., Mexico and Canada`s supply chains. According to the Wilson Center, 25 cents of every dollar of goods imported from Canada to the United States is actually “Made in USA” content, like 40 cents of every dollar for goods imported to the United States from Mexico. How is that possible? In a recent study that highlighted the impact of NAFTA on the United States.

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