Cordell Hull

  • Cordell Hull, U.S. Secretary of State, 1933-1944; Nobel Peace Prize winner, ardent free trader

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    What were the welfare effects of NAFTA? Real wages increased in all NAFTA countries and Mexico had the largest gains. Almost 90% of the welfare gains and half of the increase in real wages for Mexico can be attributed to having access to cheaper intermediate goods. Canada and the United States gained relatively more than Mexico from liberalizing against the rest of the world.

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    It is amazing how such simple decisions can effect whole countries- I mean SIMPLE as in logical, calculated and so on... I think that the more Mexico benefits, so ti would be easier fro the US to maintain good relations with this country.


    Thanks for such an informative article, it's been very useful.

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    estimate sectoral trade elasticities. Estimation requires only trade and tariff data and does not require the assumption of bilaterally symmetric trade costs. With the model and estimates of sectoral trade elasticities for the year 1993, we evaluate the trade and welfare effects of the North American Free Trade Agreement

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    The goal of NAFTA was to eliminate barriers of trade and investment between the US, Canada and Mexico. The implementation of NAFTA on January 1, 1994, brought the immediate elimination of tariffs on more than one half of U.S. imports from Mexico and more than one third of U.S. exports to Mexico.

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    Every decision a government or its officials will do, always has two effects. May it be good or bad, it was agreed by two parties.

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    I think that NAFTA is not such a good thing as you describe it. i mean after all this agreement does hurt our sovereignty.

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