An argument often used in favour of free trade in general and NAFTA in particular is that it strengthens diplomatic relations between countries. In other words, economically related countries are, according to the theory, less likely to experience diplomatic or military conflicts. According to NAFTA, the heads of state of the United States, Canada and Mexico meet more often and attach greater importance to their diplomatic relations. Sixth, the agreement contributed to government spending. Government contracts for each country have been made available to suppliers in the three member countries. This has increased competition and reduced costs. « The USMCA will provide our workers, farmers, ranchers and businesses with a quality trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class and create good, well-paying jobs and new opportunities for the nearly half a billion people who call North America home. Other criticisms of NAFTA relate to the impact of the trade agreement on Mexico`s small farmers, many of whom have been unable to compete with large agricultural enterprises under the agreement. Some of the country`s family farms were brought together, and farmers went to factories where the workers, according to critics, had lower wages, less autonomy and fewer working conditions.
Trade agreements are forged to reduce or eliminate import or export quotas. These help participating countries to act competitively. Bilateral: This agreement between two countries relaxes trade restrictions. Multilateral: three or more nations participate in this agreement. Free trade advocates generally refer to lower consumer commodity prices as one of the main benefits of lower tariffs for U.S. citizens. Supporters of the agreement say the average American has benefited from a price drop due to NAFTA. Lower prices are good for American households and increase our purchasing power. Regional trade agreements refer to a treaty signed by two or more countries to promote the free movement of goods and services beyond the borders of its members. The agreement contains internal rules that Member States comply with each other.
The debate on the impact of NAFTA on its signatory countries continues.