How free trade agreements such as NAFTA benefit a country?
Key Takeaways. Some of the positive effects of NAFTA were increased trade, economic output, foreign investment, and better consumer prices. U.S. jobs were lost when domestic manufacturers relocated to lower-waged Mexico, which also suppressed wages in U.S.What are the benefits of NAFTA agreement?
NAFTA has had an overwhelmingly positive effect on the Canadian economy. It has opened up new export opportunities, acted as a stimulus to build internationally competitive businesses, and helped attract significant foreign investment.One such agreement is the North American Free Trade Agreement (NAFTA), which went into effect in January 1994. Under the terms of NAFTA, the United States, Canada, and Mexico agreed to phase out all tariffs on merchandise trade and to reduce restrictions on trade in services and foreign investment over a decade.