Question

Has NAFTA been good for Canada, Mexico, and the US? What changes, if any, should be made to the agreement, and why?

Answer 1

The North American Free Trade Agreement(NAFTA) is the trade agreement between the US, Mexico and Canada. The US recently criticize this free trade agreement in the sense that trade deficit shut down of the factory and job loss. The article 2025 of this agreement is more criticized, and it states that the party can withdraw the agreement after the six months and should provide written notice to the other members. The US wants to abandon this agreement.

In the US the NAFTA declines the manufacturing employment by 12.3 million from 17 million jobs before the agreement. The agreement adversely affects the automotive industry in the US. Because of higher competition in Mexico and most of the job went to Mexico. Also, the prices of domestic producers reduced, and it reduces the Mexican immigrants to enter the US. However, in the case of Mexico, the agreement is not all bad. Mexico becomes the manufacturing hub of the car. In the case of Canada have a moderate increase in trade balance with both Mexico and the US. The FDI also doubled.