Prospects Of NAFTA Negotiations

Introduction

President Donald Trump has called to renegotiate the North American Free Trade Agreement signed on December 17, 1992 ("NAFTA") so as to incorporate substantial changes, or altogether depart from the same.

For an assessment of NAFTA, please see our Client Update: "What's Next for NAFTA".

Canada, Mexico and the United States are taking preparatory measures relating to a possible renegotiation of NAFTA. Negotiations may occur provided each of the partners feels there is more to gain than to lose as a possible outcome of the same.

NAFTA Impact

NAFTA is not the failure some critics claim it to be. Trade among the three partners has grown substantially since it came into effect in 1994. 14% of world trade in goods takes place under its rules. Cross border supply chains have made North American firms more competitive. The manufacturing jobs it has created in Mexico have slowed migration to the United States.