The North American Free Trade Agreement Sought To

After joining the GATT, the Mexican government adopted in 1989 the final decree that liberalized the rules of the industry, but was not to abolish them completely. At the time of the NAFTA negotiations, automakers were still required to have a certain percentage of domestic content in their products and to meet export requirements, both of which were seen as major barriers to the sector. In addition, Mexico had tariffs of 20% or more on imports of automobiles and auto parts. These restrictions were lifted under NAFTA. Note: represents exports and imports from other countries as a percentage of the country`s total trade. After U.S. President Donald Trump took office in January 2017, he attempted to replace NAFTA with a new agreement and began negotiations with Canada and Mexico. In September 2018, the United States, Mexico and Canada reached an agreement to replace NAFTA with the United States,Mexico-Canada Agreement (USMCA) and all three countries had ratified it until March 2020. NAFTA remained in effect until the IMPLEMENTATION OF THE USMCA.

[13] In April 2020, Canada and Mexico informed the United States that they were ready to implement the agreement. [14] The USMCA came into force on July 1, 2020 and replaced NAFTA. An interesting question is the basis on which trade between the United States and Canada would take place after the exit of alefta. Section 107 of NAFTA implementing legislation ”suspended” the CFTA for the period during which both countries remain contracting parties to NAFTA. It has amended the implementing rules of the CFTA to replace some of its provisions, while other provisions are annexed. .