NAFTA has positive implications for Mexico and the US.

United States:

Since the United States is a developed economy the impact on the US would be less. However, some regions within the United States may be affected to a greater degree. The data suggest that these states would most likely be in the Southwest United States and in industrial states in the Midwest. As in the colonies (less developed) and Europe (more developed), both countries will gain. Although both countries gain, there will be some businesses that may be hurt by increased competition in both countries.


Because the Mexican economy is smaller and less developed, the impact on Mexico would be greater. Some Mexican industries will expand while others may have to change or close down. Through trade, more products will be available and consumers and some producers will benefit in both countries.