Nafta Pros And Cons
North American Free Trade Agreement (NAFTA)
Membership Canada Mexico United States
Background of nafta
NAFTA is the North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that has been in effect since 1 January 1994. The agreement was designed to increase trade among the three nations by reducing or eliminating restrictions on commerce, such as tariffs and import quotas. It is one of the most powerful and wide-reaching treaties in the world, governing the entire spectrum of trade and commerce on the North American continent. Although it was designed to benefit its member nations economically, it has been the subject of controversy since its inception.
Facts on NAFTA * NAFTA was built upon a …show more content…
• NAFTA has been good for Mexican agriculture. Trade growth has been remarkably balanced, with U.S. agricultural exports to Mexico increasing by $7.3 billion and U.S. agricultural imports from Mexico increasing by $6.7 billion during the last 13 years.
Result: U.S. Economic Growth during the 14 years of NAFTA Has Been Strong
• Jobs. U.S. employment rose from 112.2 million in December 1993 to 137.2 million in December
2006, an increase of 25 million jobs, or 22 percent. The average unemployment rate was 5.1 percent in the period 1994-2006, compared to 7.1 percent during the period 1981-1993.
• Manufacturing. U.S. manufacturing output rose by 63 percent between 1993 and 2006, exceeding the 37 percent increase achieved between 1980 and 1993.
• Compensation. Growth in real compensation for manufacturing workers improved dramatically.
Average real compensation grew at an average annual rate of 1.6 percent from 1993 to 2006, compared to just 0.9 percent annually between 1980 and 1993.
• Investment. Productive investment, central to rising living standards, has increased. Even excluding housing, U.S. non-residential fixed, or business, investment has risen by 107
Membership Canada Mexico United States
Background of nafta
NAFTA is the North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that has been in effect since 1 January 1994. The agreement was designed to increase trade among the three nations by reducing or eliminating restrictions on commerce, such as tariffs and import quotas. It is one of the most powerful and wide-reaching treaties in the world, governing the entire spectrum of trade and commerce on the North American continent. Although it was designed to benefit its member nations economically, it has been the subject of controversy since its inception.
Facts on NAFTA * NAFTA was built upon a …show more content…
• NAFTA has been good for Mexican agriculture. Trade growth has been remarkably balanced, with U.S. agricultural exports to Mexico increasing by $7.3 billion and U.S. agricultural imports from Mexico increasing by $6.7 billion during the last 13 years.
Result: U.S. Economic Growth during the 14 years of NAFTA Has Been Strong
• Jobs. U.S. employment rose from 112.2 million in December 1993 to 137.2 million in December
2006, an increase of 25 million jobs, or 22 percent. The average unemployment rate was 5.1 percent in the period 1994-2006, compared to 7.1 percent during the period 1981-1993.
• Manufacturing. U.S. manufacturing output rose by 63 percent between 1993 and 2006, exceeding the 37 percent increase achieved between 1980 and 1993.
• Compensation. Growth in real compensation for manufacturing workers improved dramatically.
Average real compensation grew at an average annual rate of 1.6 percent from 1993 to 2006, compared to just 0.9 percent annually between 1980 and 1993.
• Investment. Productive investment, central to rising living standards, has increased. Even excluding housing, U.S. non-residential fixed, or business, investment has risen by 107