In 1987, Canada and the United States signed the Canada-United States Free Trade Agreement (CUSFTA), prompting the elimination of trade tariffs and opening trade between the two neighbor countries. Later in 1994, the North American Free Trade Agreement (NAFTA) came into effect, adding Mexico to the FTA and consequently forming the world's largest free trade area. Each day, more than $2 billion USD in goods and services are transported across the 75 U.S.-Canada land ports. So why should American firms look to expand their business north of the border?
Over the last 21 years, the North American Free Trade Agreement (NAFTA) has created abundant trans-national trade opportunities for American, Canadian and Mexican businesses. With a population of over 122.3 million people and a GDP of approximately $1.261 trillion, the Mexican market is becoming increasingly more attractive to companies across the world. So how can U.S. businesses prepare for international trade success?
Each year, more than 25 million containers and trailers move via intermodal transportation in North America. Intermodal transportation involves the transportation of cargo using multiple modes of transportation, such as rail, truck and ship. During 2014, 60% of NAFTA freight was moved across the border via truck. Similarly, 15% of NAFTA freight traveled via train. Why do shippers elect to move goods via truck or train? The answer reflects the individual company's unique transportation needs and budget.
In January of 1994, the North American Free Trade Agreement (NAFTA) came into effect, forming one of the world's largest free trade areas. For over 20 years, NAFTA has created trade opportunities for U.S., Canadian and Mexican businesses. Today, NAFTA partners exchange nearly $2.6 billion USD in merchandise each day. The agreement has strengthened the rules and procedures governing trade and investments across the continent to position U.S. shippers as competitive international trade partners.