Which Of The Following Is Not True Regarding The North American Free Trade Agreement (Nafta)

Many economists and other observers have credited NAFTA with helping U.S. manufacturing, particularly the U.S. auto industry, become more globally competitive through greater North American economic integration and the development of supply chains.54 Much of the increase in U.S.-Mexico trade, for example, can be attributed to specialization as manufacturing and assembly plants have rebalanced. exploit economies of scale. As a result, supply chains increasingly cross national borders as manufacturing work is carried out where it is most efficient.55 A reduction in tariffs in a given sector affects not only prices in that sector, but also the industries that source inputs in that sector. The importance of these direct and indirect effects is often overlooked, according to one study. The study suggests that these linkages provide significant trade and welfare gains through free trade agreements, and that ignoring these input-output links could underestimate potential trade gains.56 About one-quarter of all U.S. imports, such as crude oil, machinery, gold, vehicles, fresh produce, livestock, and processed foods, come from Canada and Mexico, the second and third largest suppliers of imported goods to the United States. In addition, about one-third of U.S. exports, particularly machinery, vehicle parts, minerals, and oil and plastics, are destined for Canada and Mexico. In January 2017, the Trump administration officially withdrew the United States from the TPP agreement.118 All three NAFTA countries are signatories to the TPP. Prior to the withdrawal, a wide range of agricultural companies and food and agri-food interests had expressed support for the implementation of the TPP, cited improved market access for the United States. Agricultural and food products under the agreement and the possibility of export expansion.

As a result, some members of the U.S. agricultural sector have expressed disappointment with the decision to withdraw from the TPP, which has resulted, for example, in the possibility for California agriculture to reach key markets in the Pacific region under the agreement.119 In Congress, some members have expressed a desire to join the TPP.120 It is significant that all three NAFTA countries participated in the Trans-Pacific Partnership (TPP) Agreement. from which the United States withdrew in January 2017. because the TPP was the last attempt to draft a modern regional free trade agreement (FTA).5 According to a 2012 study with reduced NAFTA trade tariffs, trade with the United States and Mexico in Canada increased by only a modest 11%, compared to an increase of 41% for the United States and 118% for Mexico. [63]:3 In addition, the United States and Mexico benefited more from the tariff reduction component, with increases in social assistance of 0.08% and 1.31%, respectively, with Canada recording a decrease of 0.06%. [63]:4 Chris Chase, “A Brief History of Automobile Manufacturing in Canada,” www.autotrader.ca/newsfeatures/20160901/a-brief-history-of-auto-manufacturing-in-canada/#EWFjdFpEwMcMBGjq.97. U.S. industry groups have a positive view of the SPS Plus regulations. The TPP agreement reached included commitments to SPS and TBT rules, which many U.S. agricultural countries believe generally address U.S.

concerns and should be seen as a model for all subsequent negotiations on SPS issues in agricultural trade.135 As noted by the USTR, TPP countries have agreed to a number of changes that address specific concerns. According to Chad Bown of the Peterson Institute for International Economics, the Trump administration`s list “is entirely consistent with the president`s position of liking trade barriers and having protectionism.

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