Question

What resulted from the North American Free Trade Agreement (NAFTA)?

Answer 1

The United States and Canada shifted towards free trade with Mexico.

Answer 2

Answer:

• One of the major positive results of the North American Free Trade Agreement includes the creation of a major trade bloc that helped the region prosper and develop better relations.

• Its negative results consist of the growth in trade deficit in the United States and significant job losses in the manufacturing sector.

Explanation:

• The North American Free Trade Agreement that was enacted in 1992 helped the region prosper.

• For example, the export business in Mexico that fetched only around 60 billion dollars annually until 1992, reached 400 billion dollars by 2003.

• But, after the passage of this agreement, cheaper labor from Mexico became widely available as a result of which, many employees in the US and Canada had to lose their jobs.