Which Of The Following Was An Outcome Of The North American Free Trade Agreement (Nafta)
Source: Sir compilation using USITC business data in dataweb.usitc.gov. For 2016, the “vehicles” are made up of items from the North American Industrial Classification System (NAICS) 3361 and “Parts” are made up of items under the number NAIC 3363. NAICS is the standard used by federal statistical authorities for the classification of businesses for the collection, analysis and publication of statistical data relating to the U.S. economy. President Donald Trump cried as he promised to repeal NAFTA and other trade deals he considered unfair to the United States. On August 27, 2018, he announced a new trade agreement with Mexico, which is expected to replace it. The U.S.-Mexico trade agreement, as has been said, would maintain duty-free access for agricultural products on both sides of the border and eliminate non-tariff barriers, while encouraging more agricultural trade between Mexico and the United States and effectively replacing NAFTA. NAFTA has also used a new era of free trade agreements, which have multiplied as World Trade Organization (WTO) global trade negotiations, and has played a pioneering role in integrating labour and environmental provisions, which have become increasingly broad in subsequent free trade agreements [PDF]. The USMCA has put in place stricter enforcement mechanisms than the original agreement, which has led the AFL-CIO, the largest collection of U.S. unions, to support the pact – a rare endorsement from a group that has strongly criticized NAFTA. The Canada-U.S. agreement eliminated tariffs on cars, trucks, buses, tires and auto parts between the two countries.
NAFTA has effectively replaced that agreement. A central theme for the 115th Congress is the direction of U.S. trade policy under the Trump administration, particularly the planned renegotiation of NAFTA. Congress could consider how NAFTA could be modernized and renegotiated, the role of Congress in future renegotiations, the negotiating positions of Mexico and Canada, and the consequences of a possible EXIT from NAFTA. Congress could also consider new “21st Century” issues raised in recent U.S. free trade agreements, such as the U.S.-Korea Free Trade Agreement and the TPP, and whether these could be potential NAFTA discussions. If the United States withdraws completely from NAFTA, it could lead to serious disruptions in major North American production chains and job losses in all three countries. On the other hand, depending on the decision of the President and Congress, there may be opportunities to verify the successes of NAFTA and to check where it has not met expectations.