Supporters Of Nafta And Free Trade Would Contend That Such Agreements

An industry coalition of 130 agriculture and agribusiness groups supports the government`s efforts to modernize NAFTA „in a way that preserves and expands the profits made.” 92 The American Farm Bureau Federation states that there are „compelling reasons to update and reform NAFTA from an agricultural perspective, including improvements in biotechnology, sanitary and phytosanitary measures, and geographic indicators.” 93 Others support NAFTA`s „updating and modernization” proposals.94 Two simple ways to understand the proposed benefits of free trade are David Ricardo`s theory of comparative advantage and analysis of the impact of a tariff or import quota. While their profits from trade may not be equivalent to those of a country that is more productive in all goods, they will be even better affected economically by trade than in a state of self-sufficiency. [82] [83] For the United States, NAFTA was an opportunity to expand the growth of the export market to the south, but it was also a political opportunity for the United States and Mexico to cooperate to resolve some tensions in bilateral relations.11 A free trade agreement with Mexico would help U.S. companies expand their exports to a growing market of 100 million people. U.S. officials also understood that imports from Mexico would likely include higher U.S. content than imports from Asian countries. .