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NAFTAThe North American Free Trade AgreementWhat is free trade?What is free trade? It is the free flow of goods and sevices across borders without government interference.
What are the benefits of free trade?What are the benefits of free trade? Most economists will say that free trade is the only way for civilized society to function from an economic standpoint. They say free trade benefits all parties involved, since each would have their own comparative advantage to produce the goods and services they are most efficient at producing. That would be true if the free flow of goods and services were able to flow without any government interference. Without government interference the much sought after "level playing field" would be achievable.However, the reality of the world as we know it includes - and has always included - various kinds of protectionism as well as other forms of government interference that not only prevent a level playing field, but in the case of Communist China - creates an absolute advantage. US foreign trade policy has been misguided by the promotion and the promises of free trade with governments that do not allow the power of market forces to work. The North American Free Trade Agreement - and it's strategic trade policy - is not working for the United States, Mexico and Canada. NAFTA does indirectly contribute to the US trade deficit with China. What does NAFTA have to do with Communist China? Be sure and read the pages about NAFTA- USA, NAFTA - Mexico and NAFTA - Canada. You will see! But, first look at some trade deficit charts showing US trade deficits with Mexico, Canada and China since NAFTA began in 1994.
With the trade deficit that the U.S has with Mexico since NAFTA - it appears that NAFTA is working for Mexico! (See chart below)
With the trade deficit that the U.S has with Canada since NAFTA - it appears that NAFTA is working for Canada! (See chart below)
With the trade deficit that the U.S has with China since NAFTA - it appears that NAFTA is working for China! (See chart below)
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