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Which Of The Following Is True Regarding The North American Free Trade Agreement (Nafta)

A review of the 2001 economic outlook of the existing literature showed that NAFTA was a net benefit to Mexico. [6] In 2003, 80% of Mexico`s trade was with the United States alone. The trade surplus combined with the deficit relative to the rest of the world has led to a dependence on Mexico`s exports. These effects were reflected in the 2001 recession, which led to either a low rate or a negative rate of Mexican exports. [74] A Chapter 19 panel should consider whether the Agency`s decision was supported by “substantial evidence.” This standard was a considerable tribute to the national agency. Some of the most contentious trade disputes in recent years, such as the U.S.-Canada dispute over conifers, were negotiated ahead of chapter 19 panels. The political gap was particularly large in terms of views on free trade with Mexico. Contrary to a positive view of free trade with Canada, which 79% of Americans called fair trade partners, only 47% of Americans thought that Mexico practiced fair trade. The gap between Democrats and Republicans has widened: 60% of Democrats thought Mexico was fair trade, while only 28% of Republicans did. That was the highest number of Democrats and the lowest figure ever recorded by Republicans in the Chicago Council survey.

Republicans had more negative views on Canada than fair trade partners and Democrats. [160] The United States, Canada and Mexico could attempt to negotiate new rules of origin to cope with modern developments in automotive and automotive production or to encourage production in the North American automotive industry by enhancing rules of origin. NAFTA has phased out Mexico`s restrictive auto decree and opened Mexico`s auto sector to foreign investment from the United States. It has liberalized the North American automotive trade and played an important role in the integration of the North American automotive industry. Nafta has eliminated all U.S. tariffs on auto imports from Mexico and Mexican tariffs on U.S. and Canadian products as long as they comply with 62.5% rules of origin for cars, light trucks, engines and gearboxes; and 60% for all other vehicles and spare parts. The 115th Congress faces many nafta and international trade issues. On May 18, 2017, the Trump administration provided Congress with a 90-day communication on its intention to begin talks with Canada and Mexico to renegotiate NAFTA, as required by the 2015 Trade Promotion Authority (TPA). The government has also begun to discuss with members of Congress the extent of the negotiations. On the other hand, President Trump has sometimes threatened to withdraw from the agreement without satisfactory results. Congress could examine the impact of a renegotiation or exit from NAFTA and consider the impact this could have on the U.S.

economy and foreign relations with Mexico and Canada. It could also examine the role of Congress in a possible renegotiation, as well as the negotiating positions of Canada and Mexico.