In what seems like a new dawn for the trinity of nations (US, Mexico and Canada), the North American Free Trade Agreement (NAFTA) deal wore a new face in the closing third quarter of the year 2018. Now known as the United States-Mexico-Canada Agreement (USMCA), NAFTA was a bridge to trade disparities and promotion of peaceful trade exchanges in the Northern American countries of the US, Mexico and Canada.
This North-American Free Trade Agreement (NAFTA) which originated on January 1, 1994 and had America and Canada as member countries. The purpose was to clearly promote trade between the two member countries.
The Canadian Prime Minister, Justin Trudeau while addressing the press on the new agreement, assured Canadians that this new agreement will only make Canada and its citizens “stronger” even as they face it with “determination and also flexibility”. Though only reached in principle, the USMCA will be channeled to help protect the interest and values of Canadian workers, businesses and families in the long run. The economic impact of this agreement is seen to be ‘profoundly beneficial’ for the Canadian economy.
A critical view of the USMCA reveals among other things, the direct implication on the participating economies. While Canada is anticipating a robust and smooth impact on the Canadian economy, other parties to this agreement are yet to reveal what they think about its impact on their economies respectively. With a view to fostering growth and expansion of the middle class, the agreement is considered a tool to helping people who are working hard to attain the ‘middle class’ status in achieving this in the end.
Citing the economic size of the United States of America compared to the Canadian economy, the Canadian Prime Minister who insisted that the agreement has to be fair and present a level playing ground by preserving the “fundamental principle of the original agreement”, especially since the US economy is about ‘ten times’ bigger than the other participating economies.
In conclusion, the Prime Minister further assured Canadian citizens that though the agreement is a complex one but when it becomes active “…NAFTA will be preserved, updated, modernized and stabilized for the 21st century. It means Canadian workers and their families will enjoy greater opportunities than ever before. More prosperity means no — more does or says to invest in housing, health care and a secure retirement for our seniors. Alongside our new European and transpacific trade agreements, we are securing a higher standard of living long into the future for the people of Canada.”