There are many ways to evaluate trade agreements. Perhaps the best place to start is by evaluating how well an agreement achieved its stated goals. The North American Free Trade Agreement (NAFTA) appears to have accomplished its primary objectives, since trade and investment have significantly increased among the three NAFTA countries.
As NAFTA renegotiations get underway among the three partner countries, understanding the U.S.-Mexico relationship in particular is going to be critical for Canadians. In this special webinar, get a perspective on NAFTA from the other border involved in the renegotiation.
Dr. Raymond Robertson of Texas A&M University describes how NAFTA has shaped the U.S.-Mexico economic relationship and how both countries have benefitted from the changes brought on by the agreement.
Although U.S. imports from Mexico increased more than U.S. exports to Mexico, the facts do not support the claim that Mexico has benefitted more from NAFTA than the United States. Recent evidence suggests that earnings in the two countries have grown at about the same rate since NAFTA, and the gap between Mexican and U.S. incomes have not closed.
Furthermore, Mexican and U.S. workers are complements and not competitors for jobs. When employment expands in the United States, it also expands in Mexico, and vice-versa. Moreover, much of the value of the U.S. imports from Mexico includes parts produced in the United States that are exported to Mexico for assembly and then re-exported to the United States.