Scotiabank report shows NAFTA makes North America “greater”
The US, Canada, Mexico deal has tripled North American trade since its inception in 1994.
TORONTO — As Canada and the US sit down to discuss the future of the North American Free Trade Agreement (NAFTA), a Scotiabank Economics report tallies the factors that show the agreement that includes Mexico it has been a success over the 23 years since it was signed.
“In net terms, NAFTA has created jobs across all three member countries,” said Jean-François Perrault, senior vice-president and chief economist at Scotiabank. “The integration of supply chains across NAFTA’s countries has helped realize otherwise unattainable economies of scale and efficiencies that have made North American industry more globally competitive.”
Here are some highlights from the NAFTA report:
• North American trade has more than tripled under NAFTA since its January 1994 inception.
• NAFTA has ensured that North America has remained competitive in the race to attract capital and retain jobs. Millions of North Americans in every region now depend on NAFTA trade for their livelihood.
• NAFTA has not driven de-industrialization: technology, not trade, has cut manufacturing jobs around the world. Manufacturing’s share of US GDP has been stable for decades.
• Updating NAFTA offers a win-win-win opportunity for the U.S., Canada, and Mexico.
And here are some statistics featuring annual gains from Export Development Canada:
• Canadian exports to the US rose an average of 4.5%.
• Canadian exports to Mexico rose 9.9%.
• US exports to Canada rose 4.5%.
• US exports to Mexico rose 7.3%.
• Mexican exports to Canada rose 9.9%.
• Mexican exports to the US rose 8.6%.
Click here to download the Scotiabank Economics report.