The controversial future of NAFTA

The controversial future of NAFTA

The North American Free Trade Agreement (NAFTA) is actually the world's largest free trade agreement. In its 2,000 pages, 8 sections and 22 chapters, its 2 developed countries have the first to hold an emerging market. The three countries, Mexico, the United States, and Canada, totaled over $20 trillion in GDP. The contract, along with Ronald Raegan, changed from concept to law during the third presidency, which began in the 80s, and came into force by Bill Clinton in the 90s. NAFTA has caused a lot of controversy in the past few years, and what is causing more is a recent threat.

Great discussion

Since last November, NAFTA has taken a leap forward. Most of the rumors were about the idea of   giving up the agreement. In April, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Peña Nieto met Trump to renegotiate the terms of the agreement. In most of 2017, the United States has promised to leave unless some action is taken. If no one can reach an agreement, the United States still clings to the FTA.

Strength and weakness

The biggest criticism has been that NAFTA has taken manufacturing out of the United States, and the new administration has made it part of the mission NAFTA brings it back to. In particular, due to the decline in wages for later transfers, wages for Mexico actually raised wages in the United States. However, the price of gasoline and agricultural products fell due to the free movement of goods between countries. balance. Negotiation with NAFTA was difficult. There were a lot of positive results for those tied to NAFTA, but there was another challenge.

Related industries

Some of the new goals for renegotiation are interestingly related to the internet and dairy products. The United States is hoping to limit the responsibilities of companies like Google and Facebook, the hosts of online content. LA Times Report It is directly opposed by, or representative of, those who create record labels, production companies and content. The negotiations are looking for US dairy producers to gain access to Canada's dairy market.

When a particular industry sat at the negotiating table, the exit from the United States from NAFTA affected all industries involved. From clothing to agriculture, the new trading environment between our neighboring countries will create a new world where companies have to learn how to navigate again.