Is United States preparing to leave NAFTA deal?

What is NAFTA and Why it's bad for US Economy?
Photo credits: White House, NAFTA

Hours ago United States President Donald J. Trump has announced that there is a possibility for United States to withdraw from NAFTA deal.



What is NAFTA and Why it’s bad for US Economy?

The North American Free Trade Agreement (NAFTA) is an agreement signed by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. NAFTA has two supplements: the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC). It superseded the Canada–United States Free Trade Agreement between the U.S. and Canada. The goal of NAFTA was to eliminate barriers to trade and investment between the U.S., Canada and Mexico.

The U.S. foreign direct investment (FDI) in NAFTA countries (stock) was $327.5 billion in 2009 (latest data available), up 8.8% from 2008. The U.S. direct investment in NAFTA countries is in nonbank holding companies, and in the manufacturing, finance/insurance, and mining sectors.

Most economic analyses indicate that NAFTA has not been beneficial to the North American economies especially US Economy and the average citizen. NAFTA as it is has harmed ordinary workers and small and medium enterprises in industries exposed to trade competition.

EPI – The Economic Policy Institute estimates that about 800,000 jobs were lost to Mexico between 1997 and 2013 as a direct result of NAFTA trade agreement.

According to the Economic Policy Institute, California, Texas, Michigan and other states with high concentrations of manufacturing jobs were most affected by job loss due to NAFTA.

Jobs have been lost.

NAFTA  also contributed to large-scale, export-oriented farming, which led to the increased use of fossil fuels, pesticides and GMO.

We all know what GMO does to our health and to our childrens healt. Many corporations and mainstream media will argue with this conclusion. But i have just one question for theme and for the elite. If GMO is so healthy and good why are you buying ordinary organic food?  Why don’t you bye some GMO products they are good right? Bit this is quite another story that we will deal with soon in the future.

During the Presidential Elections of 2016 United States President Donald J.Trump has said that NAFTA was the worst trade deal the U.S. has ever signed, and has and continues to kill American jobs.


During the fiery exchange with Hillary Clinton in 2016, Trump explained that Clinton has had 30 years to fix the nation’s trade policies but she didn’t:

“All you have to do is look at Michigan and look at Ohio and look at all of these places where so many of their jobs and their companies are just leaving. They are gone. And Hillary, I’d just ask you this: you’ve been doing this for 30 years, why are you just thinking about these solutions right now? For 30 years you’ve been doing it and now you are just starting to think of solutions… I will bring back jobs. You can’t bring back jobe.”


The truth is that since Nafta, America’s trade deficit with Mexico has grown pretty dramatically. Mexico and the U.S. had on average a balanced trade account with Mexico over the 15 years before NAFTA. These days, the U.S. trade deficit with Mexico is the highest it has ever been. American companies have moved more jobs to Mexico since NAFTA. One example that Trump often cites.

The cumulative post-NAFTA trade deficit will likely hit one trillion dollars this year.

Trade representatives from U.S., Canada, and Mexico have met in Washington, D.C. last week to begin the renegotiation of the trade deal. The U.S. took a tough stance at the meeting, telling Canada and Mexico that NAFTA had “fundamentally failed” for many Americans.

Sources used: White house,  Fox, Breitbart, Economic Policy Institute

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