Trade associations representing freight rail companies from the United States, Canada, and Mexico recently released a letter encouraging each nation to keep the successful elements of North American Free Trade Agreement (NAFTA) in place and to engage in constructive negotiations.
The signing trade organizations include the Association of American Railroads (AAR), the Railway Association of Canada and the Asociación Mexicana de Ferrocarriles.
“We are thrilled to work with our peers in Canada and Mexico to send a simple message: we must not exit NAFTA in the admirable pursuit of modernizing the agreement,” Edward Hamberger, AAR president and CEO, said. “Our members serve customers that touch nearly every sector of the global economy and do so through a complex supply chain spearheaded by railroads. This cannot be upended overnight, so we are hopeful that representatives can forge a deal that continues to improve economic outcomes across all countries and North America as a whole.”
NAFTA has opened new markets and created economic growth. North America’s gross domestic product spiked 166 percent between 1993 and 2016, the letter said, growing from $8 trillion to $21.2 trillion.
Trade between the United States and Canada increased 157 percent to $544.6 billion during the same timeframe, and trade between the United States and Mexico increased 543 percent to $523.8 billion, the letter said.