The Trump administration has renegotiated to reduce the trade deficit between the United States and Mexico. The new agreement amends NAFTA in six important areas. Assessing the value of NAFTA is not a simple or simple question. However, many experts believe that free trade agreements are a necessity for the United States when competing in an increasingly globalized world. THE TRADE AGREEMENTS EVOLUTIONA visual study of more than 800 trade agreements signed between 1947 and 2016. The arguments for government-imposed barrier-free trade have a long history in the economy. But what is the opposite of free trade (or at least freer)? Total merchandise trade between the three NAFTA partners more than tripled between 1993 and 2015 to more than $1 trillion. In combination with THE CUSFTA, NAFTA has had a significant impact on the Canadian economy. In 2016, 77.8 per cent of Canada`s total merchandise exports were shipped to its NAFTA partners. Total merchandise trade between Canada and the United States more than doubled between 1993 and 2016, while trade with Mexico (from a much lower level) increased eight-fold over the same period.
The WTO Doha Round on global trade liberalization is left to discretion. Prospects for improved cooperation have been unbroken with the election of President Donald Trump to the United States in November 2016. This was not the first time NAFTA had seriously opposed a U.S. presidential race. In 1992, independent candidate Ross Perot campaigned on an anti-NAFTA platform and said the agreement would create a “huge aspirational sound” of jobs relocated to Mexico. In 2008, Barack Obama promised to amend or eliminate the agreement, but ignored that promise when he took office. But Donald Trump`s opposition to the deal was particularly bitter, with the rhetoric focusing mainly on Mexico, which he said benefited from NAFTA at the expense of the United States. NAFTA, the North American Free Trade Agreement, has eliminated many tariffs and other trade barriers between the United States, Mexico and Canada. Since then, trade between the three countries has increased severalfold. But not everyone celebrated this development. Let`s look at the pros and cons of NAFTA.
Several political and economic factors during the 1980s and into the 1990s led to the creation of NAFTA. The idea of a North American free trade area was raised by Ronald Reagan in November 1979, when he announced his candidacy for president. Canada (under the leadership of Prime Minister Pierre Trudeau) and Mexico (led by President José Lapez Portillo) have both been deeply concerned about American domination and have shown no interest in such an agreement. In 1984, a change of government in Canada with the election of Progressive Conservative Prime Minister Brian Mulroney led to the negotiation of the CUSFTA.