In October 2017, in The Globe and Mail in Toronto, an op-ed questioned the U.S. willingness to renegotiate the agreement or whether it planned to do so, no matter what, and noted that the newly appointed U.S. Ambassador, Kelly Knight Craft, is married to the owner of Alliance Resource Partners, a major U.S. coal company. Canada is implementing a carbon plan, and it is also about selling bomber jets. “Americans used so many poison pills in last week`s conversations in Washington that they should have been charged with murder,” columnist John Ibbitson wrote. [134] From the outset, critics of NAFTA feared that the agreement would result in the relocation of U.S. jobs to Mexico, despite the additional NAALC. NAFTA, for example, has affected thousands of U.S. auto workers in this way. Many companies have relocated their production to Mexico and other countries where labour costs are lower.

However, NAFTA may not be the source of these measures. President Donald Trump`s USMCA should allay those concerns. The White House estimates that the USMCA will create 600,000 jobs and increase the economy by $235 billion. After U.S. President Donald Trump took office in January 2017, he tried to replace NAFTA with a new agreement and began negotiations with Canada and Mexico. In September 2018, the United States, Mexico and Canada reached an agreement to replace NAFTA with the U.S.-Mexico-Canada Agreement (USMCA), and the three countries had ratified it until March 2020. Nafta remained in effect until the implementation of the USMCA. [13] In April 2020, Canada and Mexico informed the United States that they were ready to implement the agreement. [14] The USMCA came into force on July 1, 2020 and replaced NAFTA. From June to the end of August 2018, Canada was sidelined due to bilateral discussions between the United States and Mexico. [137] On August 27, 2018, Mexico and the United States announced that they had reached a bilateral agreement on a revised NAFTA trade agreement, which includes provisions that would boost U.S.

auto production[138] a 10-year data protection period against generic drug production on an expanded list of products enjoyed by pharmaceutical companies. , particularly U.S. manufacturers of high-quality bionological drugs. , a sunset clause – a 16-year expiry date with periodic audits over 6 years to eventually extend the contract for an additional 16 years, and a high de minimis threshold, where Mexico increased the de minimis value of US$50 in terms of duty-free and tax-free online purchases to $100. [139] [140] According to an August 30 article in The Economist, Mexico has agreed to increase the rules of origin, which would mean that 75% of a vehicle`s components must be manufactured in North America, as opposed to the previous 62.5%, in order to avoid tariffs. [141] Given that automakers are currently importing cheaper components from Asia, consumers would pay more for vehicles under the revised agreement. [142] In addition, approximately 40 to 45 per cent of vehicle components must be produced by workers earning at least $16 an hour, as opposed to the current $2.30 per hour that a worker earns on average at a Mexican auto plant. [141] [142] The Economist described this as a “Mexican car construction in a straitjacket”. [141] It is clear that NAFTA continues to improve political views on globalization and free trade in general. Opposition to NAFTA has intensified, making it much more politically difficult to adopt other similar free trade agreements.

This became clear in the summer of 2005, when the Central American Free Trade Agreement (CAFTA) stopped in Congress because of a lack of support.