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A Major Us Motive for Negotiating a Free Trade Agreement with Mexico Was to

February 7th, 2023 Comments off

A Major US Motive for Negotiating a Free Trade Agreement with Mexico Was To Enhance Economic Ties

The United States and Mexico have been in a Free Trade Agreement (FTA) since 1994, and it has been a crucial part of the economic relationship between the two nations. Free trade agreements like these are designed to eliminate tariffs and other barriers to trade, making it easier and cheaper for companies to import and export goods and services. Although there are numerous benefits to free trade agreements, one of the critical motives for the United States was to enhance economic ties with its southern neighbor.

Enhancing Trade and Investment Opportunities

The primary objective of the United States in negotiating the North American Free Trade Agreement (NAFTA) was to expand trade and investment opportunities between the two countries. The United States is the largest economy in the world, while Mexico is the second-largest in Latin America. By permitting free trade between the United States and Mexico, the agreement gives businesses in both nations a more extensive consumer base and access to new markets.

Streamlining Customs Procedures

The FTA also streamlines customs procedures by reducing the time and expense required to clear customs. This helps businesses save time and money by reducing bureaucratic delays during the import and export process. It also ensures that goods are shipped more promptly, which can enhance competitiveness and profitability.

Improving Labor Standards

The FTA also aims to improve labor standards and working conditions in the Mexican economy. The agreement will help promote labor rights and environmental protection by requiring companies to comply with labor and environmental laws and regulations. These initiatives are geared towards developing a level playing field for workers in both countries.

Strengthening Political Relations

Another important motive for the United States to negotiate the FTA with Mexico was to strengthen its political relations with its southern neighbor. The United States shares a 2000-mile border with Mexico, which has significant implications for both countries` economic and political stability. By enhancing economic ties, the two countries can build a reliable political foundation which they can use to address shared issues like immigration, security, and the drug trade.


In conclusion, a major US motive for negotiating a free trade agreement with Mexico was to enhance economic ties. By allowing for free trade, the agreement has expanded trade and investment opportunities between the two countries, streamlined customs procedures, improved labor standards, and provided a foundation for stronger political relations. NAFTA has been crucial to the economic and political relationship between the United States and Mexico, and both nations have benefitted greatly from the agreement.

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