NAFTA at TenNAFTA: A decade of strengthening a dynamic relationshipThe North American Free Trade Agreement (NAFTA), is an outstanding demonstration of the rewards to outward-looking countries that implement policies of trade liberalization as a way to increase wealth and improve competitiveness. The NAFTA is an example of the benefits that all countries could derive from moving forward with multilateral trade liberalization. Farmers, workers and manufacturers benefit from the reduction of arbitrary and discriminatory trade rules, while consumers enjoy lower prices and more choices.Strengthening a Dynamic RelationshipJanuary 1, 2004 represents an important milestone in the trade and economic relationship between Canada, the United States and Mexico. This date marks the tenth anniversary of the launching of the North American Free Trade Agreement (NAFTA). Ten years ago the three countries formed a free trade area with a total gross domestic product (GDP), at present, of US$11.4 trillion. This makes North America the world’s largest free trade area, with about one-third of the world’s total GDP, significantly larger than that of the European Union. Even with the addition of ten new members next year, the EU’s GDP will increase to US$8.3 trillion, still well behind the NAFTA region.Our three countries have enjoyed a thriving relationship based on derived from their decision to open doors and break down barriers. As we approach NAFTA’s tenth anniversary, markets continue to open up for a freer flow of goods, services and investment;, and our economies are integrating as never before. By expanding trade, investment and employment, the NAFTA is enhancing opportunities for the citizens of all three countries and has made our trilateral relationship more dynamic.In looking forward, the Parties are committed to ensuring that the NAFTA strengthens this relationship. By maintaining the NAFTA rules-based framework for expanding the scope of North American business relationships , we are setting the conditions in which citizens of North America can excel.Strengthening trilateral trade and investment.By strengthening the rules and procedures governing trade and investment on this continent, the NAFTA has allowed trade and investment flows in North America to skyrocket. According to figures of the International Monetary Fund, total trade among the three NAFTA countries has more than doubled, passing from US$306 billion in 1993 to almost US$621 billion in 2002. That’s US$1.2 million every minute. In this same period:Canada’s exports to its NAFTA partners increased by 87 percent in value. Exports to the United States grew from US$113.6 billion to US$213.9 billion, while exports to Mexico reached US$1.6 billion.US exports to Canada and Mexico grew from US$147.7 billion (US$51.1 billion to Mexico and US$96.5 billion to Canada) to US$260.2 billion (US$107.2 and US$152.9 billion, respectively).Mexican exports to the US grew by an outstanding 234 percent, reaching US$136.1 billion. Exports to Canada also grew substantially from US$2.9 to US$8.8 billion, an increase of almost 203 percent.The NAFTA has allowed both Canada and Mexico to increase their exports to the United States, but not at the expense of each other’s share in the U.S. merchandise import market. That’s because substantial new trade has been generated throughout North America. Canada has consistently accounted for approximately 18 percent U.S. imports, while Mexico has seen its share of the U.S. imports increase from 6.8 percent in 1993 to 11.6 percent in 2002.The NAFTA has also boosted competitiveness at the global level. The Agreement has been instrumental in making North America one of the most active trading regions in the world. The NAFTA countries now account for almost 19 percent of global exports and 25 percent of imports.NAFTA fosters an environment of confidence and stability required to make long-term investments and partnering commitments. With
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Ottawa International Poets and Writers for human Rights (OIPWHR)
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