Nafta Lowering barriers to trade
Tariffs as high as 30% are a major barrier to U.S. organizations selling in foreign countries,
A tariff can make U.S. products too expensive and unmarketable in other countries. Tariffs impede the free flow of products and protect a local market by keeping prices artificially higher. Lowering tariffs through free trade agreements creates competition and the demand for the lowest priced products of comparable quality.
NAFTA has lowered these barriers and strengthened the rules and procedures governing trade and investment on the North American continent.
As a result, according to the NAFTA Office of Mexico in the U.S.A., NAFTA countries now account for almost 19% of global exports and 25% of imports.
