Nafta Advantages

The advantages of NAFTA (North American Free Trade Agreement) among the U.S., Canada, and Mexico is an interesting topic. This is due to how NAFTA as a 1994 agreement between the nations above has lifted many restrictions on the exports, and imports involving agriculture. The topic is important due to the fact that it is the most detailed free trade agreement during its conception, and has established many breakthroughs. These breakthroughs involve establishing more effective processes in production, and improving the conditions of work and standards of living. NAFTA has created a legacy that has served to as a model for later FTAs the U.S. can use with other nations (Villarreal & Fergusson, 2014).

The current status of NAFTA now is

imports increase by 603% since NAFTA was created. More so, the trade deficit with Canada and Mexico has been stable, and low other than the U.S.’s trade deficit with China due to NAFTA (Villarreal & Fergusson, 2014). In the area of agriculture, NAFTA has gotten rid of barriers due to tariff’s involving the U.S. and Mexico agriculture trade. However, in regard to Canada and the U.S., provisions because of FTA were continuously applied to the trade in Canada (Villarreal & Fergusson, 2014). In the present NAFTA has been created in assisting U.S. manufacturing industries in being more competitively involved globally. An example of this is the car industry. In another example as the trade between the U.S. and Mexico has multiplied to the specializing of the assembly, and manufacturing plants that assists supply chains to overcome boundaries globally were it has a great effect. Due to NAFTA, Canada and Mexico make up 75% of all of the goods locally being sent to the U.S. (Villarreal & Fergusson, 2014). Due to NAFTA efficiency, profits, and outputs increased among the U.S., Canada, and Mexico. NAFTA has had a positive effect on businesses in these countries through efficiency, and profitability that has increased in values (Rodríguez-Barocio,