What Was The Controversy Surrounding The North American Free Trade Agreement (Nafta)

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After U.S. President Donald Trump took office in January 2017, he tried to replace NAFTA with a new agreement and began negotiations with Canada and Mexico. In September 2018, the United States, Mexico and Canada reached an agreement to replace NAFTA with the U.S.-Mexico-Canada Agreement (USMCA), and the three countries had ratified it until March 2020. Nafta remained in effect until the implementation of the USMCA. [13] In April 2020, Canada and Mexico informed the United States that they were ready to implement the agreement. [14] The USMCA came into force on July 1, 2020 and replaced NAFTA. Some of the most significant changes have occurred in the textile, clothing, automotive and agriculture industries. The elimination of trade barriers in these key industries is summarized below. The North American Free Trade Agreement created the world`s largest free trade area, covering the United States, Canada and Mexico.

In 2017, member countries generated about $22.2 trillion in gross domestic product. It is impossible to isolate the effects of NAFTA in the larger economy. For example, it is difficult to say with certainty what percentage of the current U.S. trade deficit, which reached a record $65,677 million at the end of 2005, is directly attributable to NAFTA. It is also difficult to say what percentage of the 3.3 million manufacturing jobs that were lost in the United States between 1998 and 2004 is the result of NAFTA and what percentage would have been created without this trade agreement. It cannot even be said with certainty that the intensification of trade between NAFTA countries is exclusively the result of the trade agreement. Those who support the agreement generally claim NAFTA loans for enhanced trade activity and reject the idea that the agreement has resulted in job losses or a growing trade deficit with Canada and Mexico ($8,039 million and $4,263 million respectively in December 2005). Critics of the agreement generally associate it with these deficits and job losses. After diplomatic negotiations in 1990, the heads of state and government of the three nations signed the agreement on 17 December 1992 in their respective capitals. [17] The signed agreement had to be ratified by each country`s legislative or parliamentary department. Shortly after the start of his presidency, President Clinton addressed labour and environmental issues by speaking with his Canadian and Mexican counterparts about formal joint agreements. NAFTA laws contained provisions for ancillary agreements authorizing U.S.

participation in NAFTA Labour and Environment Commissions and funds for those activities. The North American Labour Cooperation Agreement (NAALC) and the North American Agreement on Environmental Cooperation (NAAEC) were signed on 1 January 1994 on the same day as NAFTA.34 NAFTA legislation also included two adaptation assistance programs designed to relieve trade-related workers and fixed adjustment pressures: the NAFTA-NAFTA transitional adjustment program (NAFTA-TAA) and the U.S.