The second day of 2008 marked the end of the remaining tariffs on agricultural products traded between the United States and Mexico, achieving a remaining objective of the North American Free Trade Agreement (NAFTA). Tri-lateral trade between NAFTA members, the United States, Canada and Mexico has increased dramatically since the 1994 inception of the landmark trade liberalization accord.
Despite the success that the North American trade bloc has achieved, U.S. political candidates vying for votes in the contentious presidential primaries have shown lackluster support for NAFTA. Several candidates have remarked that if elected they would revisit the terms of the agreement. While perhaps a popular sentiment politically or at least a deft political strategy of deflecting attention from pressing domestic issues the numbers supporting the importance of trade for the U.S. economy speak for themselves.
In an economic environment where the price of oil hovers at $100 a barrel, a weak U.S. dollar, revived fears of a recession, the U.S. economy has remained on-track with the strong backing of U.S. products exported globally. U.S. exports to our top two markets, Canada and Mexico has surged the last six years – a time of turbulent conditions for the rest of the U.S. economy, increasing by $100 billion from 2001 to 2006. Access to foreign markets is critical to sustaining the bright spot of the U.S. economy, trade. Tampering with this successful trade agreement may yield short-term political gain but only at the expense of our economy.
The Facts:
• U.S. Exports to Canada and Mexico 2001 – 2006
Year 2001 2002 2003 2004 2005 2006
Total Exports (billion USD) $265.2 $258.3 $266.9 $299.9 $331.5 $364.4
Source: TradeStats Express™ - National Trade Data U.S. Department of Commerce
• According the U.S. Department of State, in 2006 the United States was the second largest exporter globally (behind Germany), exporting $1 trillion in goods. The U.S. remains the largest exporter of services with $422 billion in 2006.
• U.S. exports to NAFTA partner alone accounted for 35 percent of total U.S. exports in 2006.
Source: United States Trade Representative
• Canada remains the largest destination for U.S. exports, receiving $206.6 billion of U.S. goods through October of 2007.
• Mexico remains the second largest market for U.S. products with over $114 billion in products crossing in from the United States through October 2007.
• Trade using surface transportation between the United States and its North American Free Trade Agreement (NAFTA) partners was 5.5 percent higher in September 2007 than in September 2006, reaching $66.8 billion, according to the Bureau of Transportation Statistics (BTS) U.S. Department of Transportation (DOT).
The Border Trade Alliance (BTA), a leading trade organization, represents U.S. border communities and advocates for policies to facilitate international trade and commerce within North America.
1 Comment
I wish to see a union of north america wich mean a borderless communauty in north america that will include Canada united-states and mexico. Is there some one whom can tell me the time frame for the conclusion of this project please?
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