The Benefits of NAFTA
The North American Free Trade Agreement (NAFTA), which took effect on January 1, 1994, will curtail most barriers to trade and investment between Canada, Mexico and the U.S. by the time it is fully implemented in 2004. Although economists generally expect that the increased specialization and trade associated with the agreement will confer significant benefits on all participating countries, most studies have shown these gains to be relatively small. However, this research does not incorporate the impact of the trade agreement on the pace of capital accumulation.
Suggested citation: “The Benefits of NAFTA,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-05, pp. 18, 05.01.1997.