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Essay / Who benefited most from NAFTA? - 934
After long negotiations lasting more than three years, Canada, the United States and Mexico reached an agreement on trilateral trade: the North American Free Trade Agreement (Scaliger) . Commonly referred to as NAFTA, it took effect on the first day of 1994. Covering 450 million people and reaching $17 trillion in combined GDP, NAFTA proudly ranks as the number one global free trade agreement (USTR) . It is generally considered a remarkable success due to the countless benefits it brings to member countries. The goal of NAFTA was to promote closer trade relations, eliminate trade barriers, and increase market opportunities among the three countries signing the agreement. However, it is indeed the United States that has benefited the most economically from NAFTA through the expansion of American culture and access to natural and human resources. Above all, the main objective of NAFTA is to promote economic growth. From this “monetary” point of view, free trade is mainly in favor of the United States. One of the main factors that determine the economic strength of a country is GDP. Surprisingly, NAFTA is estimated to increase US GDP by 0.5% per year, or about $50 billion in 2000 (OSTR). Additionally, in 2003, ten years after the creation of NAFTA, the United States experienced the greatest economic growth – 38%, compared to 30% in Canada and 31% in Mexico (USTR). Keep in mind that the United States had a broader base for growth. On top of that, the United States has a giant manufacturing industry that consumes enormous natural resources. The majority had to come from imports: Canada and Mexico are certainly the best exporters of resources. Nearly a third of US imports come from these two NAFTA countries (Workman). The United States as the North's largest importer...... middle of paper...... from Chung-Ang University, 2002. 69-79. Internet. December 29, 2013. Sommer, Heldi. “The Economic Benefits of NAFTA for the United States and Mexico.” http://www.ncpa.org/. National Center for Policy Analysis, June 16, 2008. Web. January 5, 2014. “USDA ERS – US Agricultural Trade.” USDA ERS. Np, March 5, 2013. Web. January 3, 2014. .Villarrea, M. Angeles and Ian F. Fergusson. “NAFTA is 20 years old: overview and trade effects. » http://www.fas.org/. Federation of American Scientists, February 21, 2013. Web. January 4, 2014. .Workman, Daniel. "America's Best Import Partners." Main world exports. Np, June 13, 2013. Web. January 4. 2014. .