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. NAFTA was supplemented by two other regulations: the North American Environmental Cooperation Agreement (NAAEC) and the North American Agreement on Labour Cooperation (NAALC). These tangential agreements should prevent companies from moving to other countries in order to use lower wages, more moderate health and safety rules and more flexible environmental rules. 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.
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. Nafta has increased the competitiveness of these three countries in the global market. It has allowed them to better compete with China and the European Union. After a GDP per capita based on purchasing power parity, China is now the world`s largest economy after overtaking the United States in 2014. Sixth, the agreement provided business travellers with easy access to all three countries. 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.
In 1984, Congress passed the Trade and Customs Act, which gave the president quick power to negotiate free trade agreements. He only allowed Congress to approve or disapprove of Congress, and he could not change the negotiating points. “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. 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. 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. It took three U.S. presidents to implement NAFTA. President Ronald Reagan brought him to life when he announced his candidacy for president in 1979. He wanted to unite the North American market to better compete. NAFTA has not eliminated regulatory requirements for companies wishing to act internationally, such as rules of origin and documentation obligations, which