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This article provides information about “How NAFTA increased the Export of Canada?”:
In January 1994, Canada, the United States and Mexico launched the North American Free Trade Agreement (NAFTA) and formed the world’s largest free trade area. In addition, NAFTA has established a strong foundation for future growth and has set a valuable example of the benefits of trade liberalisation.
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The North American Free Trade Agreement (NAFTA) has brought economic growth and rising standards of living for the people of all three-member countries since 1994. As well, by strengthening the rules and procedures governing trade and investment throughout the continent, NAFTA has proved to be a solid foundation for building Canada’s future prosperity. .
NAFTA has enabled both Canada and Mexico to increase their exports to the United States. Canadian manufacturers now send more than half their production to the U.S., while Mexico’s share of the U.S. import market has almost doubled from 6.9% in pre-NAFTA 1993 to 11.6% in 2002. Manufacturers in all three countries are better able to realise their full potential by operating in a larger, more integrated and efficient North American economy.
In 2002, Canada was the most important destination for merchandise exports from 39 of the 50 U.S. states. Following a final tariff reduction between Canada and Mexico, which took effect on January 1,2003, virtually all trade in the NAFTA region has flowed tariff-free.
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Canada is a successful trading nation. Her exports account for over 40% of total gross domestic product- a higher proportion than for any other G7 country. An estimated one in four jobs in Canada is linked to her success in global markets. NAFTA has played a significant role in that achievement. Today, 86.6% of total merchandise exports go to NAFTA partners. And close to 2.3 million jobs have been created in Canada since 1994, representing an increase of 17.5% over pre-NAFTA employment levels.