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Benefits of NAFTA (The North American Free Trade Agreement)

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Added on  2020-03-15

Benefits of NAFTA (The North American Free Trade Agreement)

   Added on 2020-03-15

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Running head: BENEFITS OF NAFTA1Consumer Benefits Associated with Renegotiations of NAFTA by Mexico and CanadaStudent NameInstitutionDate
Benefits of NAFTA (The North American Free Trade Agreement)_1
BENEFITS OF NAFTA2The 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 (The North American Free Trade Agreement)_2

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