Answer:
Since the U.S., Mexico, and Canada agreed upon the new USMCA economic treaty in early 2020, NAFTA has been in the news again. USMCA, in effect, replaces the former international trade agreement, which has transformed the economies of the three countries in the past two and a half decades.
While the pros and cons of USMCA agreement remain to be seen, at the end of the NAFTA era, it is clear that the former free trade agreement boosted not only the global economy but Mexico’s economy in particular. To understand the effects of NAFTA on manufacturing in Mexico, it’s important to look back at its inception in 1994. NAFTA, which stands for the North American Free Trade Agreement, created the world’s largest tariff-free zone, allowing for free trade between the three countries and modernizing Mexico’s economy in the process. Section 321 de minimis is one example of how NAFTA continues to positively impact Mexico’s trade economy. This 2015 trade provision built on NAFTA’s foundation by raising the de minimis duty-free value of goods entering the U.S. from Mexico from $200 to $800.
This guide explains the ways NAFTA has elevated Mexico’s economy, giving a clearer idea of the factors that will continue to drive North America’s economic growth in 2020 and beyond.
Step-by-step explanation:
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