On the other hand, critics of the deal say it is responsible for job losses and falling wages in the United States, fueled by low-wage competition, companies relocating production to Mexico to cut costs and a growing trade deficit. Dean Baker of the Center for Economic and Policy Research (CEPR) and Robert Scott of the Economic Policy Institute say the increase in imports to NAFTA has resulted in a loss of up to six hundred thousand U.S. jobs over two decades, although they admit that some of this import growth would likely have occurred without NAFTA. As part of the agreement, Canada agreed to give more access to its dairy market and obtained several concessions in exchange. The USMCA will retain the Chapter 19 dispute settlement body that Canada relies on to protect it from U.S. trade means. It also avoided a proposed five-year sunset clause and instead used a sixteen-year period with a review after six years. On December 19, 2019, the U.S. House of Representatives passed the USMCA by 385 votes (Democrats 193, Republicans 192) to 41 (Democrats 38, Republicans 2, Independents 1). [78] [79] On January 16, 2020, the U.S. Senate passed the trade agreement by 89 votes (Democrats 38, Republicans 51) to 10 (Democrats 8, Republicans 1, Independents 1)[80] and the bill was submitted to the White House for Donald Trump`s signature. [81] On January 29, 2020, Trump signed the current agreement (Public Law No. 116-113).

[82] It formally amended NAFTA,[83] but not the 1989 Canada-U.S. Free Trade Agreement, which is only “suspended,” so that if the parties did not renew or renew it within 6 years, the free trade agreement would become law. [84] [85] Regardless of this, House spokesman Paul Ryan set May 11, 2018, May 17 as the deadline for congressional action. This deadline was not met and the agreement with Mexico was only concluded on 27 August 2018. [33] At that time, Canada had not yet approved the submitted agreement. Given that the outgoing President of Mexico, Enrique Peña Nieto, left office on 1 December 2018 and that 60 days of revision are required, the deadline for the submission of the agreed text was 30 September 2018, which was reached precisely on 30 September. Negotiators worked 24 hours a day and reached agreement on a draft text less than an hour before midnight on that date. The following day, October 1, 2018, the USMCA text was released as an agreed document.

NAFTA has boosted Mexican agricultural exports to the United States, which have tripled since the pact`s implementation. Hundreds of thousands of jobs in the auto industry have also been created in the country and most studies [PDF] have shown that the agreement has increased productivity and reduced consumer prices in Mexico. In early 2020, the United States Congress approved the USMCA with large bipartisan majorities in both chambers, and the agreement went into effect on July 1. However, some critics have complained that the new rules of origin and minimum wage requirements are cumbersome and boil down to state-controlled trade. CFR`s Alden was more optimistic and said the government could appeal for recognition for restoring the impartiality of U.S. trade policy. But he warns: “If this new hybrid of Trump`s nationalism and democratic progressivism is what it takes now to strike trade deals with the United States, there could be very few buyers.” During his election campaign and presidency in 2016, Trump was highly critical of NAFTA (often seen as “perhaps the worst deal ever made”) [105] and hailed USMCA as “a great deal for all of us.” [106] However, the USMCA is very similar to NAFTA, having transferred many of the same provisions and making only modest amendments, most often cosmetic,[107] and is expected to have little economic impact. [108] Former United States.