Question

Describe the recent NAFTA agreement made in 2018 ?

Answer 1

NAFTA agreement in 2018

In 2018, the three countries revised with the NAFTA agreement and if the deal is agreed upon , it would give rise to U.S.M.C.A.

This agreement focuses on giving a higher standard of living to all the workers, farmers etc and would help in developing a fair and free market and trade. Also these factors would hence be contributing to the better growth of the trading partners.

It included access to new markets like the access of USA to dairy market in Canada would be increased. This would increase Canada's exports of dairy products like cheese and milk and would almost be providing 3.5%of its total production of dairy market to USA.

Another part is that due to this agreement the production of car parts would increase in north America and a decided minimum wage for workers has also being set at$16. This wage is much more than the current wage in Mexico, so is believed that workers from Mexico would shift to US.

This is also seen as a move to incentivise the auto producers especially of car and trucks.

The beneficial aspect for Canada and Mexico is that they would have a better access to markets in USA.

These were the recent agreements made in NAFTA 2018.

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