|Results : North Americans Are Better Off After 15 Years of NAFTA
The North American Free Trade Agreement (NAFTA) revolutionized trade and investment in North America, helping to unlock our region’s economic potential. Since it came into effect 15 years ago, North Americans have enjoyed an overall extended period of strong economic growth and rising prosperity.
NAFTA has helped to stimulate economic growth and create higher-paying jobs across North America. It has also paved the way for greater market competition and enhanced choice and purchasing power for North American consumers, families, farmers, and businesses.
Furthermore, NAFTA has provided North American businesses with better access to materials, technologies, investment capital, and talent available across North America. This has helped make our businesses more competitive, both within North America and around the world. With rapidly growing economies in Asia and South America challenging North America’s competitiveness, NAFTA remains key to sustained growth and prosperity in the region.
NAFTA has proven that trade liberalization plays an important role in promoting transparency, economic growth, and legal certainty. In the face of increased global competition, Canada, the United States, and Mexico will work to strengthen the competitiveness of the North American region by continuing to pursue trade within the NAFTA region. The three countries will also continue to expand trade with other regions. Additionally, Canada, Mexico, and the United States share common challenges within North America that directly affect quality of life. At the 2009 North American Leaders’ Summit, our three countries agreed to “reiterate our commitment to reinvigorate our trading relationship and to ensure that the benefits of our economic relationship are widely shared and sustainable.
Did you know?
Since NAFTA came into effect, merchandise trade among the NAFTA partners has more than tripled, reaching US$946.1 billion in 2008. Over that period, Canada-U.S. trade has nearly tripled, while trade between Mexico and the U.S. has more than quadrupled. [C$ figure = $1.0 trillion]
Today, the NAFTA partners exchange about US$2.6 billion in merchandise on a daily basis with each other. That’s about US$108 million per hour. [C$ figures = $2.8 billion and $115 million]
Since NAFTA came into effect, the North American economy has more than doubled in size. The combined gross domestic product (GDP) for Canada, the United States, and Mexico surpassed US$17 trillion in 2008, up from US$7.6 trillion in 1993. [C$ figures = $18.2 trillion and $9.8 trillion]
In 2008, Canada and the United States’ inward foreign direct investment stocks from NAFTA partner countries reached US$469.8 billion. Meanwhile, Mexico has become one of the largest recipients of foreign direct investment among emerging markets, and received US$156 billion from its NAFTA partners between 1993 and 2008.
North American employment levels have climbed nearly 23% since 1993, representing a net gain of 39.7 million jobs.