Association of American Railroads, Railway Association of Canada and Asociación Mexicana de Ferrocarriles sent a joint letter supporting the renewal of the North American Free Trade Agreement (NAFTA) to trade negotiators from each nation.
“We ask that negotiations recognize the role that railways play in facilitating trade. In addition, these negotiations should identify a policy framework that enables railways to make the investments that are necessary to provide efficient, low-cost, safe and emissions-friendly service to their customers,” the associations said.
The letter stresses the integrated nature of today’s economy, and the importance of a framework that allows North America’s railways to connect customers from nearly every sector to global markets.
“Economic growth tied to NAFTA has allowed railways to invest tens of billions of dollars into their infrastructure while improving productivity and customer service, and fostering innovation. Collectively, these improvements have enabled railways to maintain the low rates that are required to provide shippers with access to global supply chains and support their success,” states the letter.
NAFTA has facilitated an integrated economy where a continental railway network is essential for the transportation and flow of goods across North America. It has led to additional trade, the opening of new markets, and economic growth for its signatory parties.
NAFTA has facilitated an integrated economy where a continental railway network is essential for the transportation and flow of goods across North America.
It has led to additional trade, the opening of new markets, and economic growth for its signatory parties. For example, between 1993 and 2016, North American Gross Domestic Product increased by 166 per cent, from USD 8 trillion to USD 21.2 trillion.
Over the same period, trade between the United States and Canada increased by 157 per cent, from USD 211.7 billion to USD 544.6 billion.
Similarly, trade between the United States and Mexico increased 543 per cent, from USD 81.8 billion to USD 523.8 billion, whereas trade between Canada and Mexico increased 776 per cent, from USD 3.5 billion to USD 30.8 billion.
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