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NAFTA’s Economic Impact - Council on Foreign Relations

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Mexico at the slowest

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NAFTA is a trilateral free trade deal that came into force in January 1994, signed by Democratic President Bill Clinton. The central thrust of the agreement is to eliminate the vast majority of tariffs on products traded among the United States, Mexico, and Canada.

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NAFTA is a trilateral free trade deal that came into force in January 1994, signed by Democratic President Bill Clinton. The central thrust of the agreement is to eliminate the vast majority of tariffs on products traded among the United States, Mexico, and Canada.

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Unemployment is higher than what it was when the treaty was signed

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They attribute Mexican economic stagnation not to NAFTA, however, but rather to a lack of liberalization in sectors not covered by NAFTA. “Sectors that were shielded from NAFTA—particularly energy in Mexico—have also been shielded from its positive effects.”

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