Question

In your opinion, which country has been the main beneficiary of NAFTA? any reason why?

Answer 1

NAFTA stands for North American Free Trade Agreement. It is an agreement between three major countries of North America which are United States, Canada & Mexico. This agreement came into effect on January 1, 1994 & helped in the creation of Free trade area in North America which means that these countries can freely trade goods with one another without paying taxes on these goods. NAFTA aimed at removing trade barriers between these three countries. It helped to reduce trading costs & increased market opportunities among all these three countries.

The main beneficiary of NAFTA is United States. NAFTA has economically benefited United States by expansion of American culture & access to human & natural resources. NAFTA contributed to a great extent to promote economic growth in United States. GDP is one of the most important factor that determines a country's economic growth. Due to NAFTA, American GDP got boosted by 0.5% a year. After 10 years of implementation of NAFTA i.e, in 2003, United States experienced the most significant economic growth i.e., 38%. In comparison to it, Canada experienced 30% while Mexico experienced 31% economic growth. Also, the United States, manufacturing industry consumed huge amount of natural resources which were imported from Canada & Mexico. So, United States seems to be the main beneficiary of NAFTA.