One of the most controversial aspects of NAFTA has been its impact on the agricultural sector in Mexico and the perception that the agreement has led to a greater expulsion of workers in the agricultural sector than in other economic sectors. Some argue that Mexico is affected by temporary poverty, caused by economic adaptations and social exclusion to the benefits of globalization64 Although Mexico`s agricultural exports have increased sharply, poverty in Mexico remains the same and the expected convergence of wages and incomes between Mexico and the United States has not occurred.65 66 Others challenge the role of trade in rural poverty in Mexico.67 While NAFTA has likely contributed to changes in Mexico`s agricultural sector, given the increasing U.S. import competition, some changes are likely due to Mexico`s political reform in its agricultural sectors.68 Sixth, it remains to be seen whether the USMCA will stimulate U.S.-made fibers. , yarns and fabrics, limiting the use of non-USMCA textile inputs. For example, while the new agreement expands the TPL for U.S. exports of cotton and synthetic fibre to Canada (currently with a 100% utilization rate), these products are NOT required for the use of U.S.-made yarns and fabrics. The use rate of the USMCA will remain high in the future. Asia: Within this regional supply chain, economically more advanced Asian countries (such as Japan, South Korea and China) supply textile raw materials to the least developed countries in the region (such as Bangladesh, Cambodia and Vietnam). On the basis of relatively low wages, the least developed countries generally carry out the most labour intensive clothing manufacturing processes and then export finished garments to major consumer markets around the world.
Fifth, all NAFTA countries were required to respect patents, trademarks and copyrights. At the same time, the agreement ensured that these intellectual property rights did not affect trade. Preferred Tariff (TPL) – An exception to the rule of origin in free trade agreements that allows a certain amount of textile and clothing products (usually yarns, fabrics and cuts) from a third country (a country that is not a party to the agreement) to benefit from the services of the free trade agreement. For example, under the U.S.-Bahrain Free Trade Agreement, Bahrain can use up to 65 million wires and fabrics from any other country, and people from these wires and substances (up to the limit of 65 million) are still entitled to duty-free access to the U.S. market. 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. On January 29, 2020, President Donald Trump signed the agreement between the United States, Mexico-Canada. Canada has not yet adopted it in its parliamentary body until January 2020. Mexico was the first country to ratify the agreement in 2019. Philosophy 4: The Trump administration will review all existing trade agreements to ensure they offer “about an equivalent level” in terms of trade deficits.
“Where numbers and other factors indicate an imbalance, we need to renegotiate.” The North American Free Trade Agreement (NAFTA) came into force on January 1, 1994 (P.L. 103-182) and established a free trade area as part of a comprehensive economic and free trade agreement between the United States, Canada and Mexico.