One of the most important provisions of NAFTA provided for the status of “domestic products” for products imported from other NAFTA countries. No state, province or local government could impose taxes or tariffs on these goods. In addition, at the time of the agreement, tariffs were either abolished or abolished in five or ten equal steps. The only exception to the exit was the issue of sensitive points for which the exit period would be 15 years. For the United States, NAFTA was an opportunity to expand the expanding export market southward, but it was also a political opportunity for the United States and Mexico to cooperate in resolving certain tensions in bilateral relations.11 A free trade agreement with Mexico would help U.S. companies expand their exports to a growing market of 100 million people. U.S. officials also understood that imports from Mexico likely included higher U.S. content than imports from Asian countries. In addition to NAFTA`s trade and investment opportunities, an agreement with Mexico would be a way to support the growth of political pluralism and the deepening of democratic processes in Mexico. Nafta was also an opportunity for the United States to revive the slow pace of multilateral trade negotiations in the Uruguay Round12.12 Led by the automotive industry, the largest export category, Mexican producers hold a trade surplus of $58.8 billion on goods with the United States.
Before NAFTA, there was a deficit. They also contributed to the growth of a small educated middle class: Mexico had about nine engineering graduates per 10,000 people in 2015, compared to seven in the United States. The NAFTA text did not contain labour or environmental provisions, which was a major concern for many in Congress at the time of the review of the agreement. Some politicians have called for additional provisions to address many concerns about employment and the environment, particularly in Mexico. Other policymakers argued that Mexico`s economic growth generated by the free trade agreement would increase Mexico`s resources to protect human rights and human rights. However, the concerns of congressional politicians and criticism from labour and environmental groups remained strong. As in the United States and Mexico, NAFTA has not kept the most extravagant promises of its Canadian boosters and has not aroused the worst fears of its adversaries. The Canadian auto industry has complained that low Mexican wages have driven the country`s jobs.
When General Motors dismantled 625 jobs at an Ontario plant in January and transferred them to Mexico, Unifor, the country`s largest private sector union, held NAFTA responsible. Jim Stanford, an economist working for the union, told CBC News in 2013 that NAFTA had caused a “production disaster in the country.” Notes: Data on U.S. exports to Canada are deed from import data collected by Canada.