Trade evolution in North America

Abstract North America’s trade evolution is directly interrelated with the North American Free Trade Agreement (NAFTA) that officially went into effect on January 1, 1994, creating the largest free market in the world. At the time, the combined economies of Canada, the United States, and Mexico affected more than 365 million people and were valued at US$6 trillion. This chapter presents a brief description, with statistical information, of how trade tariffs were modified during the implementation of NAFTA, key milestones of the treaty, and the side agreements on labor and the environment as they contrast to global trade flow. Furthermore, it discusses the potential implications of changes in the new NAFTA negotiations as they pertain to transportation. Contrastingly, the chapter analyses the evolution of Chinese trade as it compares in value with the global economy and in particular with the United States, with possible impacts on the remaining North American nations. The final section of the chapter presents a description of offshoring and nearshoring and the possible impacts in the NAFTA nations.