Question

why is NAFTA important?

Answer 1

NAFTA is important because :

1.NAFTA increases investment opportunities among the member nations by removing tariffs.

2.It helped quadrupling the trade between the member nations between 1993-2017 from  $297 billion to $1.17 trillion which boosted employment and output in these countries.

3.Lower prices due to removal of tariff also reduced the risk of inflation and let the Fed keeping the interest rates low.This is especially important for American since it is the greatest importer of oil.

4.NAFTA has helped the economy by boosting the growth rate by .5% a year benefiting largely the agricultural,manufacturing,and automobile sectors.

5.The US FDI in Canada and Mexico tripled and reached $452 billions by 2012.This resulted in higher profits for US enterprises.