The increase in the number of bilateral and regional trade agreements around the world and China`s growing presence in Latin America could have repercussions on U.S. trade policy with its NAFTA partners. Some proponents of open, rules-based trade argue that maintaining NAFTA or deepening economic relations with Canada and Mexico will help promote a common trade agenda with shared values and generate economic growth. Some opponents argue that the agreement has led to the eviction of workers and that renegotiation could lead to further job cuts. It is possible that a NAFTA renegotiation will comply with the provisions relating to heavy goods vehicles. The implementation of NAFTA`s heavy-duty vehicle provisions has been a significant trade issue between the United States and Mexico for many years, with the United States delaying its heavy-duty vehicle commitments under the agreement. NAFTA gave Mexican commercial vehicles full access to four U.S. border states in 1995 and to the entire United States in 2000. Due to security concerns, the United States has delayed the implementation of these provisions for many years. Over the years, the two countries have cooperated to resolve the issue and have had many discussions on safety and operational issues. 108 The International Brotherhood of Teamsters then filed a complaint for the implementation of the trucking rules and may attempt to revise the NAFTA provisions on heavy goods vehicles as part of a possible renegotiation.
According to a 2012 study, trade with the United States and Mexico increased by only 11% with reduced NAFTA trade tariffs in Canada, compared to an increase of 41% for the United States and 118% for Mexico. :3 In addition, the United States and Mexico benefited more from the tariff reduction, with welfare increases of 0.08% and 1.31%, with Canada recording a decrease of 0.06%. :4 Mexico`s first steps toward opening up its closed economy focused on reforming its import substitution policy in the mid-1980s. Further reforms were undertaken in 1986, when Mexico became a member of the General Agreement on Tariffs and Trade (GATT). For example, Mexico has agreed to lower its maximum tariffs to 50% as a precondition for GATT membership.
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