Question

Give your opinion on which country will benefit the most from the new trade agreement (USMCA) which replaced NAFTA. Provide specific support for your opinion. What was wrong with NAFTA, and did it do what it was supposed to do? Must make a post on 2 different classmates posts (substantive comments)

Answer 1

Answer -

According to me United State will benefit the most from the new trade agreement USMCA( United State- Mexico- Canada Agreement is a trade deal between the three nations) which replaced old trade agreement Nafta (North American free trade agreement).

Support for my opinions -

here we will discuss about those changes which will benefit the United State than other countries

1.Boost for can manufacturing-

1. ​A new opportunity to build cars and trucks in North America is being developed by the USMCA. In order to stay free of tariffs when travelling between the three signatory countries, it allows 75 percent of the parts of a vehicle to be manufactured in one of the three countries — up from the existing 62.5 percent law. It also allows employees earning at least $16 an hour to make more vehicle parts, which can provide a boost to manufacturing in the United States, where salaries are more than in Mexico.

​​​2. Strengthened labour provisions in Mexico-NAFTA has long been criticised by industrial workers for moving jobs to Mexico, where salaries are lower, and it was a priority for Democrats for the USMCA to improve labour compliance, providing a more level playing field for American workers. In order to improve the implementation language in the contract, Democrats reached an agreement with the Trump administration. The reforms were able to gain the backing of the AFL-CIO, the United States' biggest coalition of unions.

3. More market access for American dairy farmers-

Tariffs on most agricultural goods traded between the three countries were abolished by the initial NAFTA. Canada and Mexico are two main export markets for US farmers and ranchers. These tariffs will be held at zero by the USMCA, thus opening up the Canadian market for US milk, poultry and eggs. In order for all of this, the United States will allow more Canadian dairy farms, peanuts and peanut products to cross the channel, as well as a restricted amount of sugar.

4. ​Nafta updates for digital age-

​​​​​​​​​In a chapter on digital trade that was not a part of the original NAFTA, the USMCA provides sweeping new benefits for the technology industry. The new provisions are not expected to create new employment directly, but might provide US companies with a boost in other ways. The new trade agreement, for example, forbids Canada and Mexico from requiring US businesses to store their information on in-country servers. It also means that in Canada and Mexico, US businesses can not be prosecuted for.