The 20 year anniversary of the ratification of NAFTA will take place next month and Brookings has just released a report expertly illustrating the impact of trade among the neighbors.
Key findings focused on the importance of cross-border trade between metropolitan areas. LA-Mexico City led the way between US & Mexico metros with $2.2 billion in trade and New York-Toronto led US-Canada trade with $3.7 billion. In total, $884+ billion was traded between North American countries in 2010 with $512 billion (58%) derived from metropolitan areas.
What is even more significant is the shared value in finished products added through co-production. The Woodrow Wilson Center for International Scholars states that 40% of the content the US imports from Mexico is produced in the US vs 4% from China. That represents a return of 40 cents on every dollar spent on imports from Mexico.
As China loses competitiveness from increased labor wages and transportation costs the importance of exploiting the virtues of NAFTA becomes even greater.