«

»

Dub
15

Put in place effective procedures for the implementation and implementation of this agreement, for its joint management and for the settlement of disputes. In 2008, Canadian exports to the United States and Mexico totaled $381.3 billion and imports $245.1 billion. [59] According to a 2004 paper by University of Toronto economist Daniel Trefler, NAFTA provided Canada with a significant net benefit in 2003, with long-term productivity increasing by up to 15 per cent in the sectors that experienced the largest tariff reductions. [60] While the decline in low-productivity jobs has reduced employment (up to 12 per cent of existing jobs), these job losses have lasted less than a decade; Overall, unemployment has declined in Canada since the legislation was passed. Trefler commented on the compromise, saying that the crucial trade policy issue was „how free trade can be implemented in an industrialized economy so that the long-term benefits and short-term adjustment costs borne by workers and others are recognized.“ [61] NAFTA represents the North American Free Trade Agreement negotiated by former U.S. President George H.W. Bush and entered into force in 1994 under President Clinton. The agreement exists between the United States, Canada and Mexico and was originally created to reduce trade costs and strengthen North American trade. The agreement eliminated almost all tariffs and taxes on imports and exports.

The agreement also frees the three countries from trade barriers. According to a study published in the Journal of International Economics, NAFTA reduced U.S. manufacturing pollution: „On average, nearly two-thirds of U.S. manufacturing reductions in coarse particulate matter (PM10) and sulphur dioxide (SO2) between 1994 and 1998 can be attributed to trade liberalization to NAFTA.“ [100] In late 2019, the Trump administration received support from Democrats in Congress for the USMCA, after agreeing to strengthen the implementation of the work. In the updated pact, the parties agreed on a number of changes: the rules of origin for the automotive industry have been strengthened, so that 75% of each vehicle must come from the Member States, compared to 62.5%; and new work rules have been added, which require 40 percent of each vehicle from factories that pay at least $16 an hour. A proposal to extend intellectual property protection for U.S. pharmaceuticals – a red line for U.S. negotiators – has been sacrificed. The USMCA is also upgrading the controversial investor-state dispute settlement mechanism, eliminating it completely with Canada and limiting it to certain sectors with Mexico, including oil and gas and telecommunications. According to a report by the New York City public tank report, Council on Foreign Relations (CFR), bilateral agricultural trade tripled between 1994 and 2017 and is considered one of the main economic effects of NAFTA on trade between the United States and Canada, with Canada becoming the largest importer of U.S. agricultural sectors.

[64] Fears of job losses in the U.S. manufacturing sector were not due to the fact that manufacturing employment remained „stable“. Given Canada`s labour productivity, which rose to 72% of the U.S. level, hopes of closing the „productivity gap“ between the two countries were also not realized. [64] The agreement came into force under Bush`s successor, Bill Clinton, the agreement itself decimated it.