NAFTA Benefits for Mexico and Canada

This assignment examines the consumer benefits associated with the renegotiation of the North American Free Trade Agreement (NAFTA) by Mexico and Canada. It discusses how NAFTA has boosted Mexican agricultural exports, created job opportunities in manufacturing industries, reduced trade barriers, and increased regional trade. The paper also highlights the positive impacts of NAFTA on wages, salaries, and living standards in both countries.

Running head: BENEFITS OF NAFTA 1
Consumer Benefits Associated with Renegotiations of NAFTA by Mexico and Canada
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BENEFITS OF NAFTA 2
The North American free trade agreement (NAFTA) is accord which was negotiated by three
nation’s government that is Mexico, Canada, and the United States. This provided the
elimination of most tariffs on the products which were trades among the Canada, Mexico and
United States (Olson, 2008, p. 420). The primary goal was to integrate Mexico with high
development and high wage economy of the United States as well as Canada. This article
explains some of the consumer benefits associated with the renegotiation of NAFTA by both
Mexico and Canada.
NAFTA has boosted Mexican farm products which are exported to the United States. This has
increased job opportunities in manufacturing industries in Mexico and united states, and many
studies are found about how to improve the farm products hence bring up the positive impact on
productivity and other consumer goods in Mexican (Wise, 2010, p. 100). Also, NAFTA has
enabled Mexico to reduce its trade barriers. This is by joining General Agreement on Tariffs and
Trade (GATT) and also pre-NAFTA average tariff level. Also in Mexico, the companies have
grown considerably due to the vast trade deficit and low cost of production as compared to
companies in other countries around it hence those countries bring the production to Mexico
making the consumers to enjoy the low prices.
NAFTA has enhanced completion of a trade agreement which is free between the United States,
Canada, and Mexico. This has enabled many people to join in trading industry hence improving
their standards of living and also improving the country’s wealth through the payment of taxes.
Also, NAFTA has increased the regional trade sharply in Canada (Yunez-Naude and Barceinas,
2002, p. 24). Also, cross-border investments surge with many other countries. Improvement of
wages and increment of salaries in Canada to many employees and also a creation of many job
opportunities have been created by NAFTA making many jobless people get jobs.

BENEFITS OF NAFTA 3
NAFTA has enabled Mexico to disconnect some promises from other countries which support
Mexico. This has allowed the Mexico to raise wages and salaries to the employees, to deliver the
rapid growth and to reduce the emigration within the Mexico country (Hill, 2008, p. 24). Also,
NAFTA has helped Mexico to reduce its public debt, to stabilize its inflation also has introduced
a rule on the balanced budget and has enabled the country to build up the foreign reserves.
In conclusion, NAFTA has become of great importance to these two nations that are Mexico and
Canada. NAFTA has enabled these two countries to bounce back quickly to their profit margins.
Therefore, having introduced numerous benefits to Mexico and Canada, NAFTA should highly
get supported by the responsible governments to enhance continued growth and economic
sustainability.

BENEFITS OF NAFTA 4
References
Hill, C., 2008. International Business: Competing in the global marketplace. Strategic
Direction, 24(9).
Olson, R.D., 2008. NAFTA's food and agriculture lessons. Peace Review, 20(4), pp.418-425.
Wise, C. ed., 2010. Post-NAFTA Political Economy: Mexico and the Western Hemisphere. Penn
State Press.
Yunez-Naude, A. and Barceinas, F., 2002. Lessons from NAFTA: The case of Mexico’s
agricultural sector. Washington, DC: The World Bank.