What Is North American Free Trade Agreement

20. december 2020 Slået fra Af Patrick

Since the first negotiations, agriculture has been a controversial topic within NAFTA, as has been the case with almost all free trade agreements signed under the WTO. Agriculture was the only party that was not subject to trilateral negotiation; Three separate agreements have been signed between the two parties. The Canada-U.S. agreement provided for significant tariff restrictions and quotas for agricultural products (mainly sugar, dairy products and poultry products), while the Mexico-U.S. pact allowed for broader liberalization within a time frame (this was the first North-South free trade agreement for agriculture to be signed). [Clarification needed] The overall effect of the agricultural agreement between Mexico and the United States is controversial. Mexico has not invested in the infrastructure needed for competition, such as efficient railways and highways. This has led to more difficult living conditions for the country`s poor. Mexico`s agricultural exports increased by 9.4% per year between 1994 and 2001, while imports increased by only 6.9% per year over the same period. [69] NAFTA had three major advantages. U.S. food prices were lower due to duty-free imports from Mexico. Oil imported from Canada and Mexico has prevented the rise in gas prices.

NAFTA has also increased trade and economic growth for all three countries. After diplomatic negotiations in 1990, the leaders of the three nations signed the agreement in their respective capitals on 17 December 1992. [17] The signed agreement had to be ratified by each country`s legislative or parliamentary department. The U.S. Chamber of Commerce attributed to nafta that U.S. trade in goods and services with Canada and Mexico increased from $337 billion in 1993 to $1.2 trillion in 2011, while the AFL-CIO held the agreement responsible for sending 700,000 U.S. manufacturing jobs to Mexico at that time. [86] One of the most affected agricultural sectors was the meat industry. In 2004, Mexico moved from a small player in the U.S. export market to the second largest importer of U.S. agricultural products, and NAFTA may have been an important catalyst for this change. Free trade has removed barriers to business between the two countries, allowing Mexico to offer a growing meat market in the United States and increase sales and profits for the meat industry in the United States.

A simultaneous and dramatic increase in Mexican GDP per capita has significantly changed meat consumption patterns due to increased per capita meat consumption. In 1990, Carlos Salinas, then Mexican president, began talks with the United States to join the North American Free Trade Area. That is why Reagan`s successor, President George Bush, began negotiations in 1991 for a North American trade agreement that would bring together the United States, Mexico and Canada. According to a 2013 Jeff Faux article published by the Economic Policy Institute, California, Texas, Michigan and other high-concentration manufacturing states were most affected by NAFTA job losses. [97] According to a 2011 article by EPI economist Robert Scott, the trade agreement has “lost or supplanted” some 682,900 U.S. jobs. [98] Recent studies have agreed with congressional Research Service reports that NAFTA has little influence on manufacturing employment and automation, accounting for 87% of manufacturing job losses. [99] In a 60-minute interview in September 2015, presidential candidate Donald Trump called NAFTA “the worst trade deal ever approved in [the United States][121] and said that if elected, “he would either renegotiate or we would break it.” [122] [123] Juan Pablo Castaen [es], chairman of the trade group Consejo Coordinador Empresarial, expressed concern about the renegotiations and the desire to focus on the automotive industry.

[124] A number of trade experts have stated that the abandonment of the