The Regional Free Trade Agreement Among The United States Canada And Mexico

Studies by the U.S. International Trade Commission (USITC) on the effects of NAFTA have highlighted the difficulty of isolating the effects of the agreement from other factors. While the impact of NAFTA is not easy to measure, the USITC has provided some estimates over the years. A 2003 study estimated that U.S. GDP could grow by 0.1 to 0.5 percent if the agreement were fully implemented.50 A recent June 2016 USITC report on the economic impact of trade agreements implemented under the Trade Promotion Authority provides a summary of the results of the post-2002 NAFTA literature.51 The report states that, overall, the results show that NAFTA “has resulted in a significant increase in the volume of trade for the three countries; a small increase in U.S. well-being; and little or no change in total U.S. employment. 52 The 2016 USITC report also indicates that some studies show that trade with Mexico has lowered the United States. Wages in some sectors and countries, while wages have risen in other sectors. According to ITC, other studies show that NAFTA in general “has essentially had no influence on the real wages in the United States of skilled or unskilled workers.” 53 analysts agree that NAFTA has opened up new opportunities for small and medium-sized enterprises. Every year, Mexican consumers spend more on American products than their counterparts in Japan and Europe, so the stakes are high for entrepreneurs. (Most studies on NAFTA focus on the impact of U.S. business with Mexico.

Trade with Canada has also been improved, but the passage of the trade agreement has not had as much influence on the already liberal trade practices that America and its northern neighbour have complied with.) The Canada-U.S. Auto Products Agreement eliminated tariffs on cars, trucks, buses, tires and auto parts between the two countries. NAFTA has effectively replaced that agreement. The negotiations “mainly focused on car exports, tariffs on steel and aluminum, as well as the milk, egg and poultry markets.” One provision “prevents any party from legislating that restricts the cross-border flow of data.” [11] Compared to NAFTA, the USMCA raises environmental and labor standards and encourages increased domestic production of cars and trucks. [12] The agreement also provides updated intellectual property protection, gives the United States increased access to the Canadian milk market, imposes a quota for Canadian and Mexican auto production, and increases duty-free treatment for Canadians who purchase IN FROM THE UNITED STATES. Online goods from US$20 to US$150. [13] The full list of differences between the USMCA and NAFTA can be found on the USTR (United States Trade Representative) website. [14] The North American Free Trade Agreement (NAFTA); in Spanish: Tratado de Libre Comercio de América del Norte, TLCAN; The North American Free Trade Agreement (NAFTA) was an agreement signed by Canada, Mexico and the United States, which created a trilateral trading bloc in North America. . . .

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