Nafta: International Trade Essay

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NAFTA is an acronym for the North American Free Trade Agreement. The benefits of having NAFTA as a trade agreement, is it allows more countries to freely trade with the United States. Canada imports crude oil to the United States with a lower tariff. This allows the United States to rely less on crude oil and petroleum imports from the Middle Eastern Countries. The United States exports agriculture goods, red meats, heavy machinery and vehicles to Canada. These are just a few examples of goods made in the United States and exported to Canada.
“The U.S. goods trade deficit with Canada was $34.5 billion in 2010, a 20.7% increase ($5.9 billion) over 2010. The U.S. goods trade deficit with Canada accounted for 4.7% of the overall U.S. goods trade deficit in 2011. The United States has a services trade surplus of $28.0 billion with Canada in 2011, up 13.9% from 2010.” ("Office of the United States Trade Representatives", 2013).
Allowing trade with Canada has opened up the borders for the United States to import and export goods and services. Canada has become one of the top countries the United States trades with. The trade balance between the United States and Canada There are some negative aspects to having to NAFTA. While it is a good economic practice to trade with other countries as there are items available at a lower cost in Canada the United States has suffered a loss of jobs because of NAFTA. Companies move to lower cost countries such as Mexico and produce

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