Potential Effects on Mexico's Economy of the Changes from NAftA to usmcA

Abstract

From the beginning of his term in 2017, U.S. President Donald Trump expressed his dislike of the North American Free Trade Agreement (nafta), saying it had been unfair to the U.S. economy. As a result, his administration began a process of renegotiation of the agreement in the second half of that year. Its intentions were very clear, and it achieved what it wanted in the United States, Mexico, Canada Agreement (usmca). This article analyzes these changes and the results of nafta, supposedly favorable for Mexico and prejudicial for the United States. It is not clear whether the U.S. will be able to reduce its trade deficit vis-à-vis Mexico with these changes or if U.S. companies established in Mexico will fully comply with the new rules set up in the usmca without looking for alternatives.