Analyzes goals & effects of trade agreement. Economic background & theory, Mexican devaluation crisis, politics, immigrant labor, wages, protectionism.
The dismantling of trade barriers and opening of markets have led to economic growth and rising prosperity in the U.S., Mexico and Canada. The real GDP growth for all NAFA partners from 1993 to 2005 has been impressive. U.S. GDP during this time period grew 48%t while Mexico’s increased by 40% and Canada’s grew by 49%. However, because the Canadian and Mexican economies are much smaller than the economy of the U.S., their increases actually represent much larger growth rates.
There is great debate about the job and wage impact of NAFTA. U.S. unemployment has fallen from 7.5% just before the signing of NAFTA, while trade deficits over the last decade grew by nearly 300%. Further, total U.S. employment grew by twenty-two million jobs between 1990 and 2000, and U.S. average per capita real income rose by 26% over the same period.
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