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. An argument often made in favour of free trade in general and NAFTA in particular is that it strengthens diplomatic relations between countries. In other words, economically interconnected countries are less likely, according to theory, to experience diplomatic or military conflicts. After NAFTA, the heads of state of the United States, Canada and Mexico meet more frequently and place more emphasis on their diplomatic relations. The debate on the impact of NAFTA on signatory states continues. While the U.S., Canada and Mexico have seen economic growth, higher wages and increased trade since NAFTA was implemented, experts disagree on the extent to which, if any, the agreement has actually contributed to these gains in the 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. NAFTA has created both winners and losers. If you think the trade deal has resulted in a net loss for the U.S., you`re probably against and similar deals.
If you think NAFTA has made a net gain for the economy, you could support NAFTA even if you criticize parts of the agreement. Wherever you are, it`s worth remembering that the trade flows that can be attributed to NAFTA pale in comparison to U.S. trade with China, and that nafta`s impact on the entire U.S. economy was relatively small, even though some communities really felt the pain. “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. The North American Free Trade Agreement created the largest free trade area in the world, encompassing the United States, Canada and Mexico. In 2017, member countries generated about $22.2 trillion in gross domestic product. A free trade agreement is a pact between two or more countries aimed at eliminating import and export barriers between them. Under a free trade policy, goods and services can be bought and sold across international borders without customs duties, quotas, subsidies or government bans hindering their trade.
Second, increased trade has boosted economic output. The U.S. International Trade Commission noted that this full implementation of NAFTA would increase the Economics, however, NAFTA is a success, and without NAFTA, the effects of competition from the growing economies of the European Union or China would be even worse. It`s crucial now that these two trading zones rank above the U.S. as the world`s largest economies. Other criticisms of NAFTA focus on the impact of the trade deal on smallholder farmers in Mexico, many of whom have not been able to compete with large agribusinesses under the agreement. Some family businesses in the country were dissolved and farmers went to factories where, according to critics, workers had lower wages, less autonomy and worse working conditions. .