The North American Free Trade Agreement And The European Union Both Seek To Expand

The free trade agreement was concluded in 1988 and NAFTA extended most of the provisions of the free trade agreement to Mexico. NAFTA was negotiated by the governments of U.S. President George H.W. Bush, Canadian Prime Minister Brian Mulroney and Mexican Prime Minister Carlos Salinas de Gortari. An interim agreement on the pact was reached in August 1992 and signed by the three heads of state and government on 17 December. NAFTA was ratified by the national parliaments of the three countries in 1993 and came into force on January 1, 1994. Notes: The United States uses different trade classifications for trade statistics. The trade data in this table exclude energy trade in three categories: HTS (HTS) code 2709, oil and oils of oil minerals, crude oil; Code HTS 2710, oil oils and oils of oil minerals (excluding crude oil) and NESOI derivatives containing 70% (by weight) or more of these oils; and HTS code 2711, petroleum gas and other hydrocarbon gas. See dataweb.usitc.gov. Overall, Canada has become more dependent on trade with the United States and has based its southern neighbour on 75 per cent of its exports.

Other high-income countries tend to be much more diverse and rarely rely more than 20% on a single partner. U.S. presidents have long,s warm relationships with Canadian prime ministers, but Mr. Trump has not hesitated to use that dependency as leverage. As part of the USMCA talks, he threatened to impose new tariffs on Canadian auto parts if Ottawa did not accept trade concessions. While Mexico`s unilateral trade and investment measures in the 1980s and early 1990s contributed to increased U.S. direct investment in Mexico, NAFTA`s foreign investment provisions may have helped to strengthen Mexico`s reforms and investor confidence. NAFTA has helped give U.S.

and Canadian investors non-discriminatory treatment of their investments as well as investor protection in Mexico. Nearly half of Mexico`s total FDI investment is active in the manufacturing sector. While within the EU we are still studying its 20 chapters, 510 pages and annexes, their obvious achievements are clearer than in the depth of their reports: 30% of the world`s population and GDP, 28% of world trade and five members of the G20.