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Report on NAFTA highlights benefits for US manufacturers and SMEs
Kirill Abbakumov   on Friday, May 19, 2017 at 12:00:00 am

In April, the U.S. Chamber of Commerce have published a report on the North American Free Trade Agreement (NAFTA) titled The Facts on NAFTA: Assessing Two Decades of Gains in Trade, Growth, and Jobs. The report highlights that a rising tide of commerce between the U.S. and Mexico has boosted competitiveness of American manufacturers and increased exports of small and medium-sized enterprises.

The report is published on the premise that there appear to be new opportunities for faster growth, deeper investment, and stronger North American competitiveness. This optimism stems from Trump administration’s commitment to revitalizing economic growth and maintaining a rocksteady strategic and economic partnership with Canada and Mexico.

The report also argues in favor of modernizing the trade agreement in order to strengthen economic ties that benefit Canada, U.S., and Mexico. Given that 14 million American jobs depend on the NAFTA agreement, which remains crucial to U.S. manufacturing, services, and agricultural sectors., there have been arguments in favor of modernizing the NAFTA agreement. Inclusion of such things as e-commerce and the digital economy would stimulate growth among 125,000 American small and medium-size businesses that rely on NAFTA for their exports.

Highlights of the report:

  • Trade with Canada and Mexico supports nearly 14 million American jobs, and nearly 5 million of these jobs are supported by the increase in trade generated by NAFTA.
  • NAFTA supports tens of thousands of jobs in each of the 50 states—and more than 100,000 jobs in each of 17 states.
  • Trade with Canada and Mexico accounts for $1.3 trillion, and the two countries buy more than one-third of U.S. merchandise exports.
  • NAFTA allowed U.S. manufacturers to add more than 800,000 jobs in the four years after NAFTA entered into force. Canadians and Mexicans purchased $487 billion of U.S. manufactured goods in 2014, generating nearly $40,000 in export revenue for every American factory worker.
  • NAFTA has helped U.S. agricultural exports to Canada and Mexico to increase by 350%.
  • With NAFTA, U.S. services exports to Canada and Mexico have tripled from $27 billion in 1993 to $92 billion in 2014.
  • Canada and Mexico are the top two export destinations for more than 125,000 of U.S. small and medium-size enterprises selling goods and services abroad in 2014.