It is difficult to find a direct link between NAFTA and overall employment trends. The Economic Policy Institute, partially funded by trade unions, estimated that in 2013, 682,900 net jobs were supplanted by the U.S. trade deficit with Mexico. In a 2015 report, the Congressional Research Service (CRS) said NAFTA “has not caused the huge job losses that critics fear.” On the other hand, it allowed that “in some sectors, trade-related effects may have been greater, particularly in sectors that have been more exposed to the removal of tariff and non-tariff barriers, such as textiles, clothing, automobiles and agriculture.” US President Donald Trump opposed it during his election campaign and promised to renegotiate the agreement and “open it” if the US could not get its desired concessions. A renegotiated agreement between the United States and Mexico-Canada was adopted in 2020 to update NAFTA. But why did Trump and many of his supporters see NAFTA as “the worst trade deal of all time,” while others saw their main flaw as a lack of ambition and the solution as even more regional integration? What did we promise? What was delivered? Who were the winners of NAFTA and who were the losers? Read on to learn more about the history of the agreement, as well as the key players in the agreement, and how they paid off. Critics of NAFTA often focus on the U.S. trade balance with Mexico. While the United States enjoys a slight advantage in services trade by exporting $30.8 billion in 2015 while importing $21.6 billion, the trade balance with the country is generally negative, due to a yawning deficit of $58.8 billion in merchandise trade in 2016.
This represents a surplus of $1.7 billion in 1993 (in 1993, the deficit was $36.1 billion). After all, three low-key events have had a significant impact on the North American economy, none of which can be attributed to NAFTA. The collapse of the technology bubble has led to growth. The September 11 attacks led to a severe crackdown on border crossings, particularly between the United States and Mexico, but also between the United States and Canada. In a 2013 Department of Foreign Affairs article, Michael Wilson, Canada`s Minister of International Trade from 1991 to 1993, wrote that crossing the U.S.-Canada border fell by nearly 70% between 2000 and 2012 to a four-decade low. The North American Free Trade Agreement (NAFTA) is a pact to remove most of the barriers to trade between the United States, Canada and Mexico that came into force on January 1, 1993. Some of its provisions were implemented immediately, while others were phased in over the next 15 years. It is probably certain to give NAFTA at least some of the credit for doubling real trade among its signatories. Unfortunately, the simple impact assessments of the agreement stop.