Question

What benefits do you think the United States receives from the NAFTA? What problems do you think the United States experiences as a result of NAFTA? How do you think the United States can benefit from the economic growth of Mexico, which is an expected result of the agreement?

post has to be in at least 300 words.

Answer 1

Benefits of NAFTA to US

• The U.S. exports a total of $584 billion through NAFTA. Most of those exports go to Canada, the largest importer of U.S. products, while the rest goes to Mexico.
• NAFTA eliminated most of the trade tariffs between the U.S., Canada, and Mexico which created an easier trade of goods.
• Diplomatic relations with Canada and Mexico were improved as a result of NAFTA.
• Prices of consumer goods were lowered because of NAFTA.
• Approximately $80 billion was added to the GDP of the U.S. thanks to NAFTA.

Problems of NAFTA to US

• According to a report by the Economic Policy Institute, American jobs have been negatively impacted by NAFTA, to the tune of approximately 800,000 lost jobs.
• Worker and environmental protection standards are lax under NAFTA.
• The majority of lost jobs have come from the manufacturing sector of the U.S. economy.
• Wages for workers without a college degree were suppressed because of NAFTA and the competition of extremely low-wage workers in Mexico.

US can benefits from Mexico economic growth because

Mexico is the third largest trading partner of the U.S., just behind China and Canada. Total bilateral trade between the US and Mexico amounted to more than $500 billion during 2013. Our exports to the U.S. have increased significantly since NAFTA entered into force, with roughly 80 percent of them coming to this country. Meanwhile, U.S. exports to Mexico in 2013 were $226 billion, up 443 percent since 1993. In fact, Mexico buys more U.S. goods than all of the BRICS combined—and nearly as much as the entire European Union. Moreover, 5.9 million U.S. jobs depend on trade with Mexico. Even Mexican exports benefit the American economy: 40 percent of the value of Mexican exports to the U.S. contains American inputs. By 2020, Mexico will have the capacity to build one in every four vehicles in North America, up from one in six in 2012. Additionally, Mexico has begun to invest in high technology exports; we have become the leading exporter of flat screen televisions in the world, the fourth largest computer exporter and a growing pioneer in the aerospace industry.