How the North American Free Trade Agreement Benefitted Canada

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HOW THE NORTH AMERICAN FREE TRADE AGREEMENT BENIFITTED CANADA The North American Free Trade Agreement, also referred to as ‘NAFTA’, is an agreement between Canada, the United States, and Mexico. It was preceded by the Canada and United States Free Trade Agreement, signed on January 2nd, 1988 by leaders of Canada and the United States. The North American Free Trade Agreement, or NAFTA, came into effect on January 1st, 1994, and was designed to increase trade between the three countries by reducing, or getting rid of trade restrictions such as tariffs, and unneeded trade-related fees and payments. With all of the features of the North American Free Trade Agreement combined, it created the world’s largest free trade area, allowing 450 million people to trade with one another at a lower cost. The agreement also aided in creating a connection between Canada, the United States, and Mexico, leading to other agreements and benefits such as labour and environmental regulations. In general, the North American Free Trade Agreement has affected Canada in a positive way. It brought Canada stronger economic growth, created jobs for Canadians and increased trade between the three countries. The North American Free Trade Agreement helped boost up Canada’s economic growth, and allowed it to become stronger. Due to the elimination of tariffs; Canada, the United States, and Mexico became able to do business and trade with one another without having to worry about paying an extended amount of taxes, fees, etc. (Nafta Background, 2012). Due to the fact that the agreement allowed Canada, the United States, and Mexico to do business with each other without worrying about these extra payments that were required previously, the countries were able to have enough money and funds available to expand their market, and trade internationally with countries outside NAFTA, allowing their economies to develop and grow further. More than the United States and Mexico, Canada’s Gross Domestic...
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