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Economic growth has been a major factor of NAFTA. "Since NAFTA entered into force, the Canadian economy has grown by an annual average of 3.8%, keeping Canada in the lead among the G-7 countries. This healthy growth has translated into the creation of close to 2.1 million jobs, representing an increase of 16% over pre-NAFTA employment levels." (1) Overall, free trade has boosted employment in Canada. With the implementation of new jobs Canada has documented substantial growth in their exports, and a significant portion of total job growth has been export related. With the growth of so many jobs Not only has NAFTA provided the Canadian economy with more jobs, but it has opened the door for all tariffs to be eliminated between the three countries (Canada, U.S, and Mexico). .
Free trade has allowed Canadian producers to realize their full potential by operating in a larger, more integrated and efficient economy. With Free trade Canadian manufacturers are able to access the highest quality of goods, tariff- free, across North America to be used in the final production of exports. (Griswold, 2000) In January 2001, Mexican tariffs were eliminated on certain pharmaceuticals, chemicals and batteries, representing close to $207 million in bilateral trade. (1) Consumers benefit from better prices, (due to competition) and a greater choice of products and higher quality of goods and services. The elimination of tariffs allows an economy to grow and with this growth comes better living standards and stronger economies. ELABORATE.
Improved access to NAFTA markets has increased Canada's attractiveness to foreign investors. The global flow of foreign direct investment (FDI) has more than quadrupled in the past decade, from $206 billion in 1990 to $827 billion in 1999. (1) In 2000, foreign direct investment in Canada reached $292 billion, in which more than 64 percent of that investment comes from NAFTA partners.