Question

Why might the United States want to renegotiate its commitments under NAFTA? What about Canada? Mexico? What advice would you give those involved in negotiations in light of the possibility that domestic policies can favor certain industries, giving them an unfair competitive advantage in global markets?

Answer 1

NAFTA :- The North American Free Trade Agreements (NAFTA) is a three country grant arranged by the governments of Canada, Mexico and US. NAFTA removed most tariffs on products traded between the three countries, with a main focus on relaxation trade in agriculture, textiles and automobiles manufacturing.

USMCA:- The Unites States, Mexico, and Canada have signed a contract to modernize the 25-year old NAFTA into a 21st century agreement.

New Negotiations which are involved in NAFTA:-

1. Protections for United States Inmovators and Creators.

2. Most comprehensive enforcement provisions by any trade agreement.

3. Strongest Standards of Protection for trade secrets.

4. New Digital Trade.

5. Core obligations to stop discrimination against US.

6. Labor rights recognized by the international labor organization.

7. Enhanced labor enforcability.

Advice:-

1. There should be special panel for settling tariff disputes among NAFTA members.

2. There should be ‘produce more at home’ policy among the members of NAFTA.

3. There should be fair competition between the nations of NAFTA.