New Nafta Agreement Mexico

The North American Free Trade Agreement (NAFTA) was first implemented in 1994, with the intention of promoting free trade between the United States, Mexico, and Canada. However, after years of criticism and complaints from both politicians and workers that NAFTA had done more harm than good, renegotiations were finally initiated by the US government in 2017. After long and sometimes contentious negotiations, the US, Mexico, and Canada came to a new agreement known as the United States-Mexico-Canada Agreement (USMCA), which was signed into law by President Donald Trump on January 29, 2020.

One of the most significant changes in the new agreement was that it shifted the focus from simply promoting free trade to ensuring fair competition between the three nations. The USMCA includes measures to protect workers` rights and the environment, as well as provisions to prevent currency manipulation. The agreement also includes provisions related to intellectual property, digital trade, and new rules related to the automotive industry.

Mexico played a crucial role in negotiating the new agreement, and there were several important changes in the provisions relating to Mexico. One of the most significant changes was related to labor standards. The new agreement requires Mexico to pass laws giving workers the right to organize and collectively bargain, with independent labor courts to oversee disputes. Mexico also agreed to a higher minimum wage requirement, with a gradual increase over time to reach $16 an hour for workers making auto parts.

Another key change was related to the automotive industry. The new agreement requires that a significant portion of each vehicle be made by workers earning at least $16 an hour, which will help to reduce the incentive for companies to move jobs to Mexico to take advantage of lower wages. Additionally, the agreement requires that more of the parts in each vehicle be made in North America, which will help to promote the growth of a more integrated supply chain.

Overall, the new United States-Mexico-Canada Agreement represents a significant update and modernization of the North American Free Trade Agreement. The agreement represents a compromise between the three nations and includes provisions aimed at ensuring fair competition and promoting economic growth for all three parties. While the agreement is not without its critics and detractors, it represents an important step forward in the development of trade policies in the region.