From the beginning, NAFTA`s critics feared that the deal would result in the transfer of U.S. jobs to Mexico, despite the complementary naalc. For example, NAFTA has affected thousands of American autoworkers in this way. Many companies have relocated production to Mexico and other countries where labor costs are lower. However, NAFTA may not have been the source of these measures. President Donald Trump`s USMCA should dispel these concerns. The White House estimates that the USMCA will create 600,000 jobs and add $235 billion to the economy. U.S. President Donald Trump opposed it during his election campaign and promised to renegotiate and “tear up” the deal if the U.S. could not get its desired concessions. A renegotiated agreement between the United States, Mexico and Canada was approved in 2020 to update NAFTA.

Proponents believe this boosts competition and growth. Bilateral trade agreements also expand a country`s goods market. In the early 2000s, under the Bush administration, the United States conducted free trade agreements with a number of countries. If you go to a supermarket and find South American bananas, Brazilian coffee and a bottle of South African wine, you will discover the effects of international trade. NAFTA has been complemented by two other provisions: the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Laboratory Cooperation (NAALC). . . .