standard North American Trade Agreement

On December 12, 2019, the Mexican Senate adopted the revised treaty by 107 votes to 1. [89] On April 3, 2020, Mexico announced its readiness to implement the agreement and joined Canada,[15] although it requested that its auto industry have additional time to comply with the agreement. [90] Although NAFTA has not kept all its promises, it has remained in force. Indeed, in 2004, the Central American Free Trade Agreement (CAFTA) extended NAFTA to five Central American countries (El Salvador, Guatemala, Honduras, Costa Rica and Nicaragua). In the same year, the Dominican Republic joined the group in signing a free trade agreement with the United States, followed by Colombia in 2006, Peru in 2007 and Panama in 2011. The Trans-Pacific Partnership (TPP), signed on October 5, 2015, represented an extension of NAFTA to a much larger extent. In the 2016 U.S. presidential election, Donald Trump`s campaign included a promise to renegotiate or eliminate NAFTA if the renegotiations fail. [21] After the election, Trump made a series of changes that influenced trade relations with other countries. The exit from the Paris Agreement, the cessation of participation in the Trans-Pacific Partnership negotiations and the significantly larger increase in tariffs with China were some of the steps he took, which reinforced the fact that he was serious about changing NAFTA. [22] Much of the debate about the virtues and errors of the USMCA resembles the debate on all free trade agreements (FTAs), such as the nature of free trade agreements as public goods, potential violations of national sovereignty and the role of commercial, labour, environmental and consumer interests in the development of the language of trade agreements. A 2014 study on the impact of NAFTA on U.S. trade employment and investment showed that the U.S.

trade deficit with Mexico and Canada increased from $17.0 billion to $177.2 billion between 1993 and 2013 and supplanted 851,700 U.S. jobs. [84] “The USMCA will provide our workers, farmers, ranchers and businesses with a high-level trade agreement that will lead to freer markets, fairer trade and stronger 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. Nevertheless, NAFTA has been a recurring objective in the broader free trade debate. President Donald J. Trump says it undermines U.S. jobs and manufacturing, and in December 2019, his administration finalized an updated version of the pact with Canada and Mexico, now known as the U.S.-Mexico-Canada Agreement (USMCA). The USMCA received broad support from all parties on Capitol Hill and came into force on July 1, 2020. The main provisions of NAFTA required a gradual reduction in tariffs, tariffs and other trade barriers between the three Member States, with some tariffs to be abolished immediately and others over a 15-year period.