Question

Based on the terms of the United States integration into NAFTA, discuss how American businesses can benefit from it using examples of at least TWO distinct industries.

Answer 1

Trade between the three participants quadrupled from $290 billion to $1.23 trillion between 1993 and 2019.That enhanced the three countries ' economic growth, revenues, and employment. It also lowered customers' costs. At that time, from $142 billion to $549 billion, the United States increased its shipments of products to the other two. That's 33 percent of its overall exports, rendering Canada and Mexico the top two export markets. It exported $293 billion to Canada and $256 billion to Mexico. Through removing all tariffs between the three nations, NAFTA improved trading. It also established deals for company owners on foreign rights. That reduced the cost of trade. It stimulates investment and growth, especially for small enterprises.

NAFTA boosted economic growth in the United States by as much as 0.5% a year. Agriculture, vehicles, and services were the sectors which benefited the most.

U.S. agricultural exports to Canada and Mexico quadrupled from 11 billion dollars in 1993 to 43 billion dollars in 2016, accounting for 25 % of global food exports and creating 20 million workers. Another $54.6 billion in corporate spending was leveraged by this exchange. Since it abolished high Mexican tariffs, NAFTA boosted farm exports. For US beef, sugar, soybean meal, corn sweeteners, apples, and beans, Mexico is the top export destination. It is the second-largest destination for maize, soybeans, and oils for export.

The same argument was at stake as the United States was negotiating the Trans-Pacific Alliance (TPP). Like NAFTA, by creating a powerful regional economy that includes the United States, the deal was driven by the need to make American goods more competitive against Chinese goods. The clauses of the TPP will also allow for improved defence of American intellectual property rights and international investment.

Such advantages are why the outgoing U.S. The trade representative called the exit of the United States from the TPP a gift to China two weeks ago, and that is why China is negotiating its own large-scale multilateral Asian trade deal and bilateral deals with other countries , such as India.