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North American Free Trade Agreement (NAFTA) (Facts and figures (Came into…
North American Free Trade Agreement (NAFTA)
Facts and figures
Came into effect on January 1st 1994
Objective of eliminating tariff and other restrictions on free trade and investment
Today NAFTA covers a North American economy with a combined output of US$17.0 trillion.
The NAFTA region is home to 444.1 million people
Established an unique relationship between a poor 3rd world nation and two of the world's richest countries
Why was the NAFTA formed?
the increasing economic challenge from Western Europe and Asia
the completion of the internal market of the EU and the establishment of European Economic Area (EEA) in 1993
Growing concern that nations left outside trade blocs would be commercially disadvantaged
Impact on the USA
Advantages
six million U.S. jobs depend on U.S. trade with Mexico
Mexico imports more from the U.S. these days than do all of the BRIC nations combined
the United States has been $127 billion richer each year thanks to “extra” trade growth fostered by NAFTA
U.S. employment rose from 110.8 million in 1993 to 137.6 million in 2007, an increase of 24 percent.
The United States exported $136.5 billion worth of goods to Mexico in 2007, up 242 percent since 1993
Investment in Mexico has helped increase the efficiency of U.S. domestic production
Disadvantages
Trade unions and environmental groups have led the argument against NAFTA
Trade unions feared that free trade with Mexico would result in wage and benefit reductions if US firms were to remain competitive against cheap