WHAT IT IS
- Renegotiations of NAFTA have started this past week in Washington, D.C.
- NAFTA (the North American Free Trade Agreement) creates a trilateral trade bloc between Mexico, the United States, and Canada.
- NAFTA was signed into law under the Clinton administration in January 1994 after Mexico joined the bilateral agreement between the U.S. and Canada.
- President Trump believes NAFTA is hurting U.S. economy and workers. Renegotiation of the agreement is one of his primary administrative goals.
WHY IT MATTERS
NAFTA has a large impact on the U.S. economy and its relations with its neighbors to the north and south, so a renegotiation could have a lasting effect. It is unknown what kind of impact a renegotiation or withdrawal would have on the U.S. economy. President Trump has been defiant about its adverse effects; however, Canada and Mexico believe it has been beneficial for all sides.
WHERE WE ARE NOW
- U.S., Mexico, and Canada started renegotiations for NAFTA on August 16th, 2017, with strong criticisms from the Trump administration on the agreement.
- Canada and Mexico downplayed the U.S.’s scrutiny of NAFTA and their focus on trade deficits.
THINGS TO THINK ABOUT
- Here are expansive studies on NAFTA and its impact on the U.S. by The Review of Economic Studies and the Congressional Research Service.
- How are you affected by NAFTA, and do you believe it benefits or hurts the U.S.?