US Could Reap Profits From The Strength Of Canadian And Mexican Economies

In the more than 20 years since NAFTA took effect, many local economies are falling behind their more advanced, more profitable neighbors in border areas like the Great Lakes region and Laredo, Texas.

 

By Alain StephensAugust 24, 2017 10:48 am| ,

The North American Free Trade Agreement went into effect January 1, 1994 The pact was created to bolster trading of commodities between Canada, the U.S. and Mexico, by eliminating trade tariffs. But some argue that making it cheaper to trade also made it easier for companies to move American jobs elsewhere.

At his rally earlier this week in Arizona, President Donald Trump, a vocal critic of the pact, said he doesn’t think NAFTA can work because “we have been so badly taken advantage of.” But it may be possible for the U.S. to get a better deal out of NAFTA without having to change the rules.

Ana Campoy, a writer for Quartz, says Americans need to change the mindset that Canada and Mexico are profiting at the expense of the U.S. economy.

“There’s potential for the U.S. to profit from Mexico and Canada. Just thinking that way can help local businesses try to plug themselves into the economy on the other side,” she says.

 

Written by Caroline Covington.