from the Dallas Fed
The North American Free Trade Agreement (NAFTA), binding Canada, Mexico and the United States, turned 20 this year. Its objectives were clear: to increase trade and investment by eliminating tariffs, remove nontariff barriers, facilitate cross-border movement and provide a framework for dispute resolution.
The results have been impressive. Mexico–U.S. trade—exports plus imports—has grown 286 percent in inflation-adjusted terms since implementation, Jan. 1, 1994. U.S. exports to Mexico reached $226 billion in 2013, up from $67 billion in 1993, and imports from Mexico climbed to $281 billion, up 336 percent. U.S. trade with Canada is larger in volume than trade with Mexico but grew more slowly, with exports to Canada and imports from Canada rising about 85 percent in real (inflation-adjusted) terms from 1993 to 2013.
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