History of the commercial agreement between Mexico, Canada and the United States.
Introduction
The treaty at the time was between the hostile relationship of President Donald Trump and the Democratic Party. In the past it was thought that the treaty would be a victim of his style of governing, even at best: a mere delay in approval. Baptized by Trump himself as USMCA, the document was processed from a kind of internet consultation by President-elect Andrés Manuel López Obrador, who from it baptized him as T-MEC. The problem consists in which country he puts first name, as the motto of the US President says. The other words that were left out, ironically, are free and commerce.
Developing
The agreement between the United States, Mexico and Canada, clearly needs to be updated to reflect the modern economy. (Do the appointment in APA) although Mexico said on multiple occasions that said treaty was not negotiable for being one of the countries most benefited by said agreement. After the election of President Donald Trump in the American country, the renegotiation of the previous Free Trade Agreement became essential.
The renegotiation begins, after the discontent generated by Donald Trump, towards the NAFTA, referring that it is the worst commercial treaty in history, blaming it in turn for the loss of jobs in the Rust Belt or the states of the industrial belt of the country. Although in turn the Economic Policy Institute estimates that around 800.000 jobs were lost by the Mexico factor between 1997 and 2013. However, a non -partisan report of the Congress published in 2015 determined that NAFTA did not cause large losses of jobs as critics (of the agreement) fear. And there are analysis that show that the United States lost more jobs due to machines and automation than for Mexico. Do the appointment well
Trump justifies the renegotiation of the pact in which he has been the most unfair and disastrous that his country has signed for US workers. And that for this to exist, their main objectives had to be met among which stood out to reduce the commercial deficit, changes in the rules of origin and competence policy, as well as review the labor standard and ensure that the manipulation of currencies is avoided.
NAFTA was created to obtain greater competition against the growth of the Asian continent. In June 1990, Carlos Salinas de Gortari President of Mexico, and George W. Bush from the United States, they met for the first time to make a commercial agreement between the two nations, it was not until August 8, 1990 that formal conversations began to achieve an agreement. It was Herminio Blanco Mendoza (Undersecretary of Commerce in 1990), who made the negotiations against the American country. At the beginning, George W. Bush I request formal authorization to carry out the NAFTA negotiations, although I do not achieve the approval and support of a majority of the country’s Congress, significantly delaying the approval of this negotiation.
Later, Canada requests to be included, starting the process at a ministerial meeting in Toronto, Canada on June 12, 1991. A year later the rulers/ministers of each country signed the NAFTA, forming the economic bloc and the largest free trade area in the world, although it entered into force until 1994 causing an uprising of the Zapatista Army of National Liberation (EZLN), inagainst the agreement.
The agreement managed to remain until 2015, demonstrating the increase in trade between the three countries, although, unfortunately for many, in 2016 it achieved the presidency nomination by the Republican Party, and after having classified the NAFTA as the worst agreement ofThe story took the renegotiations of the agreement, so that it was modernized, beginning the discussion rounds in 2017.
The most disagreement issues between the three countries were: the regional automotive content;the Sunset clause, where the treaty was only valid for 5 years;Chapter 19 would be eliminated, which would let the three countries request the establishment of independent binational panels when their producers felt that they are victims of unfair commercial decisions by some other member of the agreement.
They had considerable debates among the three countries, until they reached an agreement that benefited all countries which was becoming complicated, after long rounds on August 27, 2018, an agreement had reached an agreement excluding from this to Canada, in addition toThe deteriorated relationship that was originating between Ottawa and Washington.
conclusion
Finally, on September 30, US and Canadian negotiators reached an agreement to update the North American Free Trade Agreement;The new commercial pact would replace NAFTA, signed in 1994. The new agreement would be called USMCA (EE. UU. Mexico Canada Agreement) in English, which means agreement United States-Mexico-channel. And for Mexico USMCA, the name of treaty between Mexico, the United States and Canada (T-MEC) was adopted, managing to satisfactorily modernize this agreement between the countries.
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