NAFTA

Category: Globalization

NAFTA has increased both U.S. exports to and imports from Mexico by a growing amount each year. Those increases are small, and consequently, their effects on employment are also small. The expanded trade resulting from NAFTA has raised the United States' gross domestic product very slightly. (The effect on Mexican GDP has also been positive and probably similar in magnitude. Because the Mexican economy is much smaller than the U.S. economy, however, that effect represents a much larger percentage increase for the Mexican economy.) Although the purpose of NAFTA was to have a bennifical impact on the mexican economy some experts have blamed the trade agreement for the devaluation of the peso and for immigration into the US.