NAFTA: its Recent Challenges and their Impact on International Trade Regimes

Abstract

The role of economic cooperation has been taking place as a very powerful tools among countries, since 19th century a several of trade agreements were created within countries around the world. NAFTA was one of the world largest free trade Agreement. The NAFTA is a regional agreement between the Government of Canada, the Government of the United Mexican States and the Government of the United States of America, enabling the free flow of goods. The NAFTA had been in effect since January 1, 1994. Most economic analyses indicated that NAFTA had been beneficial to the North American economies and the average citizen, but harmed a small minority of workers in industries exposed to trade competition. According to the Trade Adjustment Assistance (TAA) database, more than 970,000 specific American jobs certified as lost due to NAFTA, it has also lowered U.S. wages, increased inequality, and hurt U.S. manufacturing and agriculture in all 50 states. And on 30 September 2018, it was announced that the United States, Mexico, and Canada had come to an agreement to replace NAFTA with the United States–Mexico–Canada Agreement (USMCA).