U.s.-Mexico-Canada Free Trade Agreement

The United States had already concluded a free trade agreement with Canada in 1988, but the addition of a less developed country such as Mexico was unprecedented. Opponents of NAFTA have taken up wage differences with Mexico, which had only 30 percent of U.S. per capita income. U.S. presidential candidate Ross Perot said in 1992 that trade liberalization would cause a “huge noise” of American jobs fleeing the border. Supporters such as Presidents Bush and Clinton responded that the agreement would create hundreds of thousands of new jobs a year, while Mexican President Carlos Salinas de Gortari saw it as a chance to modernize Mexico`s economy so that it “exports goods, not people.” On July 17, 2017, the United States released a summary of the negotiating objectives for the renegotiation of NAFTA. U.S. objectives include deficit reduction, the inclusion of a chapter on the digital economy, and the inclusion and strengthening of labour and environmental commitments currently included in NAFTA`s ancillary agreements. On May 11, 2018, House Of Representatives spokesman Paul Ryan set May 17 as the deadline for congressional action. This deadline was not met and the agreement with Mexico was not reached until August 27, 2018.

[33] At that time, Canada had not approved the agreement. Mexico`s outgoing President Enrique Pea Nieto, having left office on 1 December 2018 and requiring 60 days as a review period, the deadline for making the agreed text available was set at the end of September 2018, 30 September 2018. Negotiators worked around the clock and reached an agreement less than an hour before midnight on a draft text. The next day, October 1, 2018, the USMCA text was published as an agreed document. New entrants to the Mexican and Canadian markets will also benefit from a lower cost to reach consumers. Express delivery drivers in the United States, which carry many poor quality shipments for these distributors, are also benefiting from reduced costs and increased efficiency. The Government of Canada noted that “THE results of CUSMA preserve key elements of long-term trade relations and contain new and updated provisions to address 21st century trade issues and foster opportunities.” For the first time, a trade agreement will require the agreement to be the result of a renegotiation between the member states of the North American Free Trade Agreement, which informally agreed on the terms of the new agreement on 30 September 2018 and officially on 1 October. [10] The USMCA was proposed by U.S. President Donald Trump and signed on November 30, 2018 by Trump, Mexican President Enrique Pea Nieto and Canadian Prime Minister Justin Trudeau as a secondary event of the 2018 G20 summit in Buenos Aires.