NAFTA, or the National American Free Trade Agreement was created to provide a set of rules that will regulate the trades between Canada, Mexico, and the United States. The primary goal of NAFTA is to remove the barriers among these three nations regarding trade and investment. NAFTA was established in 1994. Since then, many tariff and non-tariff barriers were eliminated and a lot of businesses, consumers, workers, and farmers have benefited.
In 2015, US trade in Canada and Mexico had declined to its lowest since 2011. The drop in NAFTA trade reached 10.8% and may be associated with the economic recession in Canada due to continuing negative growth. 63.2% of NAFTA trade comes from trucks. This means that despite the trade drop, there is still a significant number of vehicles being used for the transportation of goods.
The good news is that despite the decrease in NAFTA trade, the number of freight transportation and truck drivers/owners are still increasing. It is a good sign because it shows that the freight industry will overcome the drop in trade and will eventually overcome the challenges of the trade.
Why is this so? Transportation of goods is indispensable. Regardless of where you are, there will always be products to be shipped and business who will receive the products. Transportation and freight business is part of the cycle. So despite the slow flow of movement in trade, the increasing transportation and truck companies will eventually encourage more people to be involved in the shipping and transportation industry.
Besides, people must take advantage of the decreasing number of truck drivers and operators. The drop in truck drivers can be attributed to the old population of drivers. The younger generation is considering other job opportunities making the truck industry a good investment. In the coming years, the demand for truck drivers will continue to rise. So, despite the NAFTA trade drop, there will still be a consistent increase in the needed truck and operators. In the end, we can positively say that the freight business will still be in demand for the coming years.