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Which Statement Reflects An Outcome Of The North American Free Trade Agreement

From a static point of view, the Comparative Advantage Act provides that all nations can benefit from free trade because of the increase in production available to consumers because of more efficient production. James Jackson of the Congressional Research Service describes the benefits of trade liberalization, “by removing foreign barriers to U.S. exports and removing U.S. barriers to foreign goods and services, helps strengthen the most competitive and productive industries and increase the relocation of labour and capital from less productive efforts to more productive economic activities.” [8] U.S. trade with Canada more than doubled in the first decade of NAFTA (1989-1999), from $166.5 billion to $362.2 billion. U.S. exports to Canada increased from $100.2 billion in 1993 to $312.1 billion in 2014, before falling to $266.8 billion in 2016. U.S. imports from Canada increased from $110.9 billion in 1993 to $349.3 billion in 2014, before returning to $278.1 billion in 2016 (see Table A-1).

After falling during the 2001 recession, overall trade with Canada reached a new high of $600.6 billion in 2008, before falling victim to the financial crisis in 2009, when it fell to $430.9 billion. The United States has a trade deficit with Canada since NAFTA and grew from $9.9 billion in 1989 to $78.3 billion in 2008, before declining during the 2009 recession. In 2016, the trade deficit with Canada narrowed further to $11.2 billion. While the trade deficit with Canada has been attributed to the Free Trade Agreement/NAFTA, these increases have been uneven and can be attributed to other economic factors such as energy prices.45 In addition to the two trilateral agreements, the United States and Mexico have concluded a bilateral agreement complementary to NAFTA on cross-border environmental cooperation.37 In that agreement, the two governments committed to cooperating in the development of environmental infrastructure projects along the U.S.-Mexico border to address environmental degradation issues. The agreement created two organizations that deal with these issues: the Boundaries Commission for the Environment (BECC), based in Jusrez, Mexico, and the North American Development Bank (NADBank), based in San Antonio, Texas. Sister organizations work closely and with other federal, regional and local partners in the United States and Mexico to develop, certify and facilitate funding for water and wastewater treatment, municipal waste and related projects on both sides of the U.S.-Mexico border region.

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