- Posted by México
- On Wednesday September 13th, 2017
- 0 Comments
- canada, fta, Mexico, NAFTA, President Donald Trump, United States
This agreement is an extension of the former Free Trade Agreement of Canada and the United States that was signed on October 4, 1988 for the formalization of the commercial relationship between the two countries. In 1990, the bloc entered into negotiations to be replaced by a treaty that included Mexico and entered into force as of January 1, 1994, when the ratification process was carried out by the legislature of each country that signed it.
Canada, the US and Mexico formed a trade bloc called NAFTA, the agreement allows for reduced costs to promote the exchange of goods between the three countries and to facilitate US companies investing in Mexico.
When NAFTA was signed, a period of 15 years was proposed for the total elimination of customs barriers between the three countries. It was further agreed that it withdrew from restrictions on trade in various products, including motor vehicles and spare parts for computers, textiles and agriculture. (Patents, copyrights and trademarks) and highlighted the elimination of investment restrictions between the three countries. Measures relating to the protection of workers and the environment were added later as a result of supplementary agreements signed in 1993.
Currently, Canada, the United States and Mexico are in the renegotiation of the FTA agreement at the request of President Donald Trump, who considers the agreement as a mistake and claims that it damages the commercial and industrial interests of his nation.
At the moment, there was a certain truce, since in recent days President Donald Trump and Canadian Prime Minister Justin Trudeau held a telephone conversation in which they agreed to work towards a fruitful renegotiation. “They highlighted their hope of reaching an agreement later this year,” the White House said in a statement; the media said that it is still possible for President Trump to decide to remain in the agreement in order to renegotiate its terms.
Meanwhile, Mexico has admitted that it is focused on preparing an alternative plan in case the United States terminates the trade agreement that has united both countries with Canada for 23 years.
The third renegotiation meeting of the North American Free Trade Agreement (NAFTA) is expected to be held next September 24 in Ottawa, Canada.