Why is it beneficial for Canada, Mexico and the USA to sign a free trade agreement?
Why is it beneficial for Canada, Mexico and the USA to sign a free trade agreement? why is it?
- SophistLv 71 decade agoFavorite Answer
Mexico is the only benefactor of this in large. The US benefits only in the oil it gets from Canada's oil sands. Canada benefits in that it has almost unrestricted access to the US market but that only increases its trade imbalance with the US.
It is NOT in the best interest of Canada to enter into such a one-sided agreement. The US, as a net importer from Mexico gets no real benefit and the oil it gets from Canada only benefits the Northeastern US, although it does keep them from importing more oil from elsewhere. Canada would benefit, without membership, by placing its oil sands on the world market.
The idea of NAFTA is that it forms a trading block with which to deal with the rest of the world. It comes at too high a price for the two most developed partners and gives Mexico an outrageous benefit in dealing with South America.
- John TLv 51 decade ago
No duties or excise taxes on goods coming in or going out. Helps our industries export and keeps imports cheaper.
- 1 decade ago
so the new world order can begin. usa will be gone as we know it and we will be the north american union...there already is a european union and there will be several other unions to come, eventually all these unions will unite and create the NEW WORLD ORDER.....Source(s): youtube zietgiest
- 1 decade ago
we're all connected so why not?