THE purpose of NAFTA was to promote the economic activity of North America`s three major economic powers. Supporters have capped NAFTA because it has opened up Mexican markets to U.S. companies like never before. The Mexican market is growing rapidly, which promises more export opportunities, which means more jobs. However, proponents have struggled to convince the American public that NAFTA would do more good than harm. Their main efforts have been to convince citizens that all consumers have as wide a choice of products at as low a price as possible, which means that consumers would be the main beneficiaries of lowered trade barriers. The U.S. Chamber of Commerce, which represents the interests of small businesses, was one of THE most active supporters of NAFTA and organized small and medium-sized business owners and employees to support the agreement. This support was essential to counter the efforts of organized work to put an end to the agreement. On November 30, 2018, the USMCA was signed as planned by the three parties at the G20 summit in Buenos Aires. [58] [59] Disputes over labour rights, steel and aluminum prevented ratification of this version of the agreement. [60] [61] Canadian Deputy Prime Minister Chrystia Freeland, U.S. Trade Representative Robert Lightizer, and Mexican Under-Secretary of State for North America Jesus Seade officially signed a revised agreement on December 10, 2019, ratified by the three countries on March 13, 2020.

The provisions of the Convention cover a wide range of agricultural products, homelessness, industrial products, working conditions and digital commerce. Among the most important aspects of the agreement are improving U.S. dairy farmers` access to the Canadian market, guidelines for a greater proportion of automobiles produced in the three countries and not imported from other countries, and maintaining the dispute settlement system, which is similar to that contained in NAFTA. [35] [38] In early 2020, the U.S. Congress approved the USMCA with large multi-party majorities in both chambers, and the agreement came into effect on July 1. Nevertheless, some critics have complained that the new rules of origin and minimum wage requirements are cumbersome and boil down to state-run exchanges. Alden of CFR was blood pressure and said that the government could recognize the restoration of cross-party cooperation in U.S. trade policy. But he warns: “If this new mix of Trump nationalism and democratic progressivism is what it takes now to conclude trade agreements with the United States, there could be very few buyers.” In 1994, the United States, Mexico and Canada, with the North American Free Trade Agreement (NAFTA), created the world`s largest free trade region, which generated economic growth and helped improve the living standards of the people of the three member countries. By strengthening trade and investment rules, this agreement has proven to be a solid foundation for building Canada`s prosperity and has provided a valuable example of the benefits of trade liberalization for the rest of the world. The new Canada-U.S.-Mexico agreement will strengthen Canada`s strong economic ties with the United States and Mexico.

The USMCA is expected to have a very small impact on the economy. [108] An International Monetary Fund (IMF) discussion paper published at the end of March 2019 stated that the agreement would have a “negligible” impact on the general economy. [108] [113] The IMF study predicted that the USMCA “would have a negative impact on trade in the automotive, textile and clothing sectors, while achieving modest welfare gains, mainly due to improved access to the goods market, with a negligible impact on real GDP.” [113] The IMF study found that the economic benefits of the USMCA would be greatly enhanced if Trump`s trade war ended (i.e., when the United States lowered tariffs on steel and aluminum imports from Canada and Mexico, and Canada and