“The USMCA will provide our workers, farmers, ranchers and businesses with a quality trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class and create good, well-paying jobs and new opportunities for the nearly half a billion people who call North America home. NAFTA has had three major advantages. U.S. food prices were lower due to duty-free imports from Mexico. Oil imported from Canada and Mexico has prevented the rise in gas prices. NAFTA has also increased trade and economic growth for all three countries. On January 29, 2020, President Donald Trump signed the agreement between the United States and Mexico-Canada. Canada has not yet adopted it in its parliamentary body until January 2020. Mexico was the first country to ratify the agreement in 2019.
The debate on the impact of NAFTA on its signatory countries continues. While the United States, Canada and Mexico have experienced economic growth, higher wages and stronger trade since nafta, experts disagree on the extent to which the agreement has actually contributed to these benefits, if at all, to manufacturing employment. , immigration and consumer goods prices. The results are difficult to isolate and other important developments have occurred on the continent and around the world over the past quarter century. About a quarter of all U.S. imports, such as crude oil, machinery, gold, vehicles, fresh produce, livestock and processed food products, come from Canada and Mexico, the second and third largest suppliers of imported products to the United States. In addition, about one-third of U.S. exports, including machinery, spare parts, mineral oils and plastics, go to Canada and Mexico. Through NAFTA, the three signatories agreed to remove barriers to trade between them. By removing tariffs, NAFTA has increased investment opportunities. Fifth, all NAFTA countries were required to respect patents, trademarks and copyrights. At the same time, the agreement ensured that these intellectual property rights did not affect trade.
From the beginning, critics of NAFTA feared that the agreement would result in a move of U.S. jobs to Mexico, despite additional NAALCs. NAFTA, for example, has affected thousands of U.S. auto workers in this way. Many companies have relocated their production to Mexico and other countries where labour costs are lower. However, NAFTA may not be the source of these measures. President Donald Trump`s USMCA should allay those concerns. The White House estimates that the USMCA will create 600,000 jobs and increase the economy by $235 billion. President Donald Trump cried as he promised to repeal NAFTA and other trade deals he considered unfair to the United States.
On August 27, 2018, he announced a new trade agreement with Mexico, which is expected to replace it. The U.S.-Mexico trade agreement, as has been said, would maintain duty-free access for agricultural products on both sides of the border and eliminate non-tariff barriers, while encouraging more agricultural trade between Mexico and the United States and effectively replacing NAFTA. NAFTA was the largest free trade agreement in the world when it was established on January 1, 1994. NAFTA was the first time that two industrialized countries had signed a trade agreement with an emerging country. On September 30, 2018, the United States and Canada agreed on an agreement to replace NAFTA, which will now be called the USMCA – the agreement between the United States and Mexico. In a joint press release from the U.S. and Canadian trade offices, officials said: Second, NAFTA eliminates many tariffs on imports and exports between the three countries. Tariffs are taxes used to