How has the North American free trade agreement benefited economies of Canada Mexico and United States?

NAFTA has led to a significant increase in trade and investment between Canada, Mexico, and the United States. In 2019, total trilateral trade in goods and services reached $1.3 trillion, a more than ten-fold increase from the $126 billion in trade recorded in 1993. Foreign direct investment (FDI) has also increased significantly, with Canada, Mexico, and the United States being each other's largest sources of FDI.

2. Job Creation

NAFTA has also helped create jobs in the three countries. In the United States, for example, the U.S. International Trade Commission estimated that NAFTA created or supported at least 1 million jobs in 2017. In Canada, a study by the C.D. Howe Institute found that NAFTA had created or maintained approximately 300,000 jobs by 2015.

3. Reduced Prices for Consumers

NAFTA has also led to lower prices for consumers. This is because the agreement has eliminated tariffs on most goods traded between the three countries, making them cheaper to import. For example, a study by the Brookings Institution found that NAFTA saved U.S. consumers an estimated $12 billion per year in 2016.

4. Improved Economic Growth

NAFTA has also contributed to economic growth in the three countries. For example, a study by the Peterson Institute for International Economics found that NAFTA had increased the real income of Canadians by 7.6%, Mexican incomes by 4%, and U.S. real income by 0.8%.

Overall, NAFTA has been a positive force for the economies of Canada, Mexico, and the United States. It has led to increased trade and investment, created jobs, reduced prices for consumers, and improved economic growth.