On June 1, 2020, the USTR Office issued the uniform rules[30] which are the last hurdle before the implementation of the agreement on July 1, 2020. The United States, Mexico and Canada updated NAFTA to create the new USMCA. The USMCA is mutually beneficial to workers, farmers, farmers and businesses in North America. The new agreement, which came into effect on July 1, 2020, will create a more balanced trading environment, support high-paying jobs for Americans and allow the North American economy to grow. In the 2016 U.S. presidential election, Donald Trump`s campaign included a promise to renegotiate or eliminate NAFTA if the renegotiations fail. [21] After the election, Trump made a series of changes that influenced trade relations with other countries. The exit from the Paris Agreement, the cessation of participation in the Trans-Pacific Partnership negotiations and the significantly larger increase in tariffs with China were some of the steps he took, which reinforced the fact that he was serious about changing NAFTA. [22] Much of the debate about the virtues and errors of the USMCA resembles the debate on all free trade agreements (FTAs), such as the nature of free trade agreements as public goods, potential violations of national sovereignty and the role of commercial, labour, environmental and consumer interests in the development of the language of trade agreements. The USMCA is expected to have a very small impact on the economy. [108] An International Monetary Fund (IMF) discussion paper published at the end of March 2019 stated that the agreement would have a «negligible» impact on the general economy.

[108] [113] The IMF study predicted that the USMCA «would have a negative impact on trade in the automotive, textile and clothing sectors, while achieving modest welfare gains, mainly due to improved access to the goods market, with a negligible impact on real GDP.» [113] The IMF study found that the economic benefits of the USMCA would be significantly increased, if Trump`s trade war is over (i.e. when the U.S. lowered tariffs on steel and aluminum imports from Canada and Mexico and Canada and Mexico lowered retaliatory duties on imports from the United States) [113] The North American Free Trade Agreement (NAFTA) , signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas and U.S. President George H.W. Bush, came into force on January 1, 1994. NAFTA has created economic growth and a rising standard of living for the people of the three member countries. By strengthening trade and investment rules and procedures across the continent, Nafta has proven to be a solid foundation for building Canada`s prosperity. NAFTA replaced Canada-U.S.