NAFTA is Good for The United States:
North American Free Trade Agreement:
The North American Free Trade Agreement (NAFTA) began in 1994 and will complete in 2008. www.fas.usda.gov This agreement removes most trade barriers between the United States, Canada, and Mexico. Agricultural agreements between the U.S. and Canada were signed in 1989 and incorporated into the NAFTA. What did this do for the United States?
Effects:
The benefits of the NAFTA have been positive to each country. Economists measured Real GDP Growth for NAFTA Partners (1993 to 2005):
U.S. Growth: 48% Mexico’s growth: 40% Canada’s Growth: 49%
www.ustr.gov
(1) U.S. employment rose from 112.2 million in 1993 to 134.8 million in 2006, and increase of 22.6 million jobs. Average unemployment for the same period was reduced from 7.1% to 5.1%.
(2) U.S industrial production rose by 49% (78% of which is manufacturing) between 1993 and 2005. From 1981 to 1993 it increased 285.
(3) Compensation increase at a rate of 2.3 % during this period, compared to 0.4 % from1987 to 1993.
(4) Productive investment rose by 104% since 1993, compared to a 37% rise from 1981 to 1993.
(5) The productivity in the business sector rose by 2.6% each year or by 36.2% overall. From 1981 to 1993 growth was 24.3%
Record of Success:
Canada and Mexico are our largest export markets accounting for 36% of our growth. For agriculture, Canada and Mexico account for 55% of the increase in U.S. exports in the world. Agricultural balance has occurred between Mexico and the U.S. Mexico imported 5.7 billion in the last 12 years, and the U.S imported 5.6 billion.