The debate on the impact of NAFTA on signatory states continues. While the U.S., Canada, and Mexico have all experienced economic growth, higher wages, and increased trade since NAFTA`s implementation, experts disagree on the extent to which the agreement has actually contributed to these gains, if any, in U.S. manufacturing jobs. immigration and consumer goods prices. The results are difficult to isolate and other important developments have taken place on the continent and around the world over the past quarter century. On September 30, 2018, the United States and Canada agreed to an agreement to replace NAFTA, which will now be called the USMCA – the Agreement between the United States, Mexico and Canada. In a joint press release from the U.S. and Canadian trade offices, officials said: The North American Free Trade Agreement (NAFTA) has been implemented to promote trade between the United States, Canada and Mexico. The agreement, which eliminated most tariffs on trade between the three countries, entered into force on 1 January 1994. Many tariffs, particularly in the agriculture, textile and automotive sectors, were phased out between 1 January 1994 and 1 January 2008. President Donald Trump promised during the election campaign to repeal NAFTA and other trade agreements that he considered unfair to the United States. On August 27, 2018, he announced a new trade agreement with Mexico to replace him.
The U.S.-Mexico trade agreement, as it was called, would maintain duty-free access for agricultural products on both sides of the border and remove non-tariff barriers to trade, while further promoting agricultural trade between Mexico and the United States and effectively replacing NAFTA. NAFTA has not eliminated regulatory requirements for businesses that wish to trade internationally, such as rules of origin. B and documentation requirements that determine whether certain goods may be traded under NAFTA. The free trade agreement also includes administrative, civil and criminal penalties for companies that violate the laws or customs procedures of the three countries. “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 robust economic growth in our region. It will empower the middle class and create good, well-paying jobs and new opportunities for nearly half a billion people in North America. On January 29, 2020, President Donald Trump signed the agreement between the United States, Mexico and Canada. Canada has yet to adopt it in its parliamentary body starting in January 2020. Mexico was the first country to ratify the agreement in 2019. From the outset, NAFTA critics feared that the agreement would lead to the relocation of U.S. jobs to Mexico despite the complementarity of the NAALC. NAFTA, for example, has affected thousands of American autoworkers in this way.