(Answered) What trade agreement resulted in Mexico emerging as the third-largest trading partner of the United…

➤ Why did manufacturing shift to Mexico after that agreement?
Manufacturers moved operations to Mexico for lower labor costs, shorter shipping times, and proximity to the U.S. market. NAFTA reduced tariff barriers and encouraged investment, while Mexico’s export-processing zones and improving infrastructure supported assembly plants. Combined, these factors lowered production costs and improved competitiveness for sectors like automotive and electronics.