NAFTA has benefited the United States in several important ways.First of all it has opened up new markets in Canada and Mexico.This has effectively increased the domestic market for American businesses.Selling to someone in north Canada is the same as selling to a local customer.It has also helped to broaden cultural horizons.
I believe that NAFTA has benefited the economy of the U.S as it allows free trade in the North American region. This allows the U.S and other North American countries, to trade without worrying about high tariffs and taxes on goods which allows American consumers to buy goods are lower prices. The rest of the money can be spend on other products which helps benefit the economy.
NAFTA has moved million of jobs to Mexico and overseas. NAFTA was created in 1994 under the guise of “free trade,” an agreement whose purpose was to remove trade barriers between Mexico, Canada and the United States. The result was nothing short of a disaster for both the United States and Mexico.
NAFTA opened up Mexico’s borders to U.S. businesses. What used to be an $18 per hour manufacturing job in America became a $3 per hour job in Mexico. No manufacturer wishing to remain competitive in America could possibly pay $18-20 per hour here when the same product can be produced right across the border in Mexico for just $3 per hour and then shipped back to the U.S. free of charge.
America’s current problem with immigration is a direct byproduct of NAFTA. The amount of immigrants entering the U.S. illegally has more than tripled since 1993, rising from less than four million to over 12 million. Furthermore, since the implementation of NAFTA 300,000 farms have gone out of business and average wages have dropped 13 percent.
Before NAFTA was signed the United States actually traded at a surplus with Mexico. By 2007, a year before the financial collapse, that balance had more than reversed, it had completely imploded. A mere 14 years after signing NAFTA, a small surplus turned into a $91 billion deficit. Factor in Canada and our deficit sat at $191 billion.
For now, not much has changed. Our deficit with Canada and Mexico is already at $56.3 billion.