NAFTA Trade

NAFTA Trade

When the U.S., Canada and Mexico implemented the North American Free Trade Agreement in 1994, it opened the door for open trade by ending tariffs on various goods and services and creating an even playing field for the three markets. Today, agricultural goods such as eggs, corn and meats; manufactured products such as auto parts; and raw materials such as steel and lumber flow freely across the borders, primarily by truck and rail.

The U.S. exported more than $280 billion in goods to Canada in 2011, making its northern neighbor the largest source for outgoing products.  U.S. imports, at more than $315 billion, make Canada the second-largest source of inbound goods after China.

Exports to and imports from Mexico set record highs in 2011, with exports reaching $198.4 billion and imports hitting $262.9 billion.

The combined $1.1 trillion in combined trade among the three partners make NAFTA the second-largest trade bloc in the world, second only to the 27-member European Union.

News & Analysis

16 Sep 2019
Chicago-based Forager last week became the latest logistics technology startup to take aim at the increasingly complex US cross-border trucking market.
02 Aug 2019
Centralized cargo consolidation makes Mexico City dominant in industrial development, but growing port volumes may change that over time.
02 Aug 2019
Terminal operators at Mexican ports say they need to work more closely with rails and truckers, and have better coordination with cargo owners to reduce shipping delays.
Mexico trucking benchmarks to launch in August
19 Jul 2019
A new truck rate benchmarking program designed to give Mexican shippers their first scientifically-created rate comparisons will be available next month, compiled by Chainalytics and a Mexican partner.
15 Jul 2019
Cross-border truck traffic between Mexico and the United States is rising, and shipping costs are likely to increase as delays tighten border capacity.
08 Jul 2019
A large share of US-bound Mexican freight is shoved through an increasingly tight funnel of truck lanes vulnerable to freight surges, migration crises, and trade disputes.

Commentary

Opening up the possibility of a break in free trade among the United States, Mexico, and Canada would be costly on many levels.

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