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What Is NAFTA?

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Free trade sounds pretty good right? Well, it is and that is exactly what NAFTA is. NAFTA stands for North American Free Trade Agreement. It is trade without any tariffs for the three countries in North America. (United States, Canada, and Mexico) Four reasons to keep NAFTA and not to get rid of it is because since the start of NAFTA trade has been quadrupled, lowered prices of that product for the consumers, increased economic growth, and has created jobs. NAFTA creates opportunities and saves not just the country money but also the consumers. Between 1993-2017, trade between the three members has quadrupled from $297 billion to $1.17 trillion. That has boosted economic growth, profits, and jobs for all three countries. It also has lowered …show more content…

That also lessened the risk of inflation and allowed the federal reserve to keep interest rates low. That’s especially important for oil prices since America’s largest import is oil. The U.S. imported $144.2 billion in oil from Mexico and Canada. Thanks to greater U.S. shale oil production, this figure was down from $157.8 billion in 2007. NAFTA reduced U.S. reliance on oil imports from the Middle East and Venezuela. It was especially important when the U.S. banned oil imports from Iran. Why? Mexico and Canada are friendly countries. Other oil exporters, such as Venezuela and Iran, use oil as a political chess piece. For example, both started selling oil in currencies other than the petrodollar. NAFTA lowered food prices in much the same way. Food imports totaled $39.4 billion in 2013, up from $28.9 billion in 2009. It lowered the prices of fresh vegetables, chocolate, fruit, and …show more content…

jobs. Most of those jobs went to 17 states, but all states saw some increases. U.S. manufacturers added more than 800,00 jobs between 1993 and 1997. That’s because manufacturers exported $487 billion in 2014. It generated $40,000 in export revenue for each factory worker. Even imports from NAFTA partners created jobs. That’s because nearly 40 percent of U.S. imports from Mexico originated with American companies. They designed the products domestically, then outscored some portion of the process in Mexico. Without NAFTA, they would have gone to China. They may not have been created at

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