Trade Facts Office of the…

                                         Trade Facts
Office of the United States Trade Representative                                       www.ustr.gov
March 2006
                          NAFTA: A Strong Record of Success
Trade and Investment Flows Substantially Increased:

·      From 1993 to 2005, trade among the NAFTA nations climbed 173 percent, from $297 billion
       to $810 billion. Each day the NAFTA countries conduct nearly $2.2 billion in trilateral trade.

·      U.S. merchandise exports to NAFTA partners grew more rapidly ­ at 133 percent ­ than our
       exports to the rest of the world, at 77 percent.

·      Canada and Mexico are our first and second largest markets; last year accounting for 36
       percent of our export growth to the world.

·      For agriculture, Canada and Mexico alone account for 55 percent of the increase in U.S.
       agricultural exports to the world since the NAFTA since 1993.

·      NAFTA has been good for Mexican agriculture. Trade growth has been remarkably balanced
       with U.S. agricultural exports to Mexico increasing $5.7 billion and U.S. agricultural imports
       from Mexico increasing $5.6 billion during the last twelve years.

Real GDP Growth for NAFTA Partners (1993 to 2005):

           U.S. Growth: 48%          Mexico's Growth: 40%         Canada's Growth: 49%

U.S. Economic Growth Stronger in 12 years of NAFTA:

·      Jobs. U.S. employment rose from 112.2 million in December 1993 to 134.8 million in Feb
       2006, an increase of 22.6 million jobs, or 20.1%. The average unemployment rate was 5.1%
       in the period 1994-2005, compared to 7.1% during the period 1982-1993.

·      Manufacturing. U.S. industrial production ­ 78% of which is manufacturing ­ rose by 49%
       between 1993 and 2005, exceeding the 28% increase achieved between 1981 and 1993.

·      Compensation. Growth in real compensation for manufacturing workers improved
       dramatically. Average real compensation grew at an average annual rate of 2.3% from 1993
       to 2005, compared to just 0.4% annually between 1987 (earliest data available) and 1993.

·      Productivity. U.S. business sector productivity rose by 2.6% year between 1993 and 2005,
       or by a total of 36.2% over the full period. Between 1981 and 1993 the annual rate of
       productivity growth was 1.8%, or 24.3% over the full 12 year period.

·      Investment. Productive investment, central to rising living standards, has increased.
       Even excluding housing, U.S. non-residential fixed, or business, investment has risen by
       104% since 1993, compared to a 37% rise between 1981 and 1993.