NAFTA's Record of Success

Trade

Since the North American Free Trade Agreement (NAFTA) entered into force in 1994, trade between the United States, Canada and Mexico has more than tripled.  From 1993 to 2007, trade of goods between the three countries rose from $293 billion to $909 billion.  Each day, the three North American countries conduct well over $2.5 billion in trade.

Exports

Canada and Mexico are the two largest markets in the world for U.S. exports, purchasing more than a third of all U.S. exports.  U.S. exports to Canada and Mexico rose from $142 billion in 1993 to $385 billion last year.  U.S. exports to Canada and Mexico have grown more rapidly — by 172% — than our exports to the rest of the world, which grew by 141% in this period.  

Growth

Since NAFTA came into force, U.S. GDP has grown by 54%.  In the same period (1993-2007), Mexican GDP grew by 48% and Canadian GDP expanded by 56%.

Jobs

U.S. employment rose from 110.7 million in January 1994 to 138.9 million in December 2007, an increase of 32.6 million jobs, or 25.5%.  The average unemployment rate was 5.1% in the period 1994-2007, compared to 7.1% during the period 1982-1993.

Manufacturing

U.S. industrial production — 78% of which is manufacturing — rose by 57% between 1993 and 2007, outpacing the 28% increase between 1981 and 1993.

Agriculture

For farmers and ranchers, NAFTA has brought substantial gains.  Canada and Mexico account for 37% of the total increase in U.S. agricultural exports since 1993.

Compensation

Growth in real compensation for manufacturing workers has risen dramatically.  Average real compensation grew at an average annual rate of 1.3% from 1993 to 2007, compared to just 0.8% annually between 1979 and 1993.

Productivity

U.S. business sector productivity rose by 2.4% annually between 1994 and 2007, or by a total of 32.8% over the full period. Between 1981 and 1993, the annual rate of productivity growth was 1.8%, or 24.3% over the full 12-year period.