What impact has it had on Canada?

        During the era of NAFTA, Canada has strong influence by keeping investment across the border whereas the investment of U.S and Mexican was tripled during the 1993. Moreover, most influence activity of Canada is that it allows its economy for the U.S and Canada became the larger investment partner of U.S. furthermore, another agreement was introduced into 1989 which was CUSFTA that enhance the trade market of Canada as developing the sense of awareness regarding to the methods of trade according to the need of time. the export from the Canada to U.S increases $110 to $346 billion as well as the import of Canada also increases with this similar amount 

        On September’ 2018 a renegotiation held on NAFTA in which the United States, Mexico and Canada have address the disadvantages and in the result of it a new deal have been settled down which is named as the United States-Mexico-Canada Agreement. About this agreement, it is stated that this agreement has to ratify by the legislatures of every member country. However, this agreement would be effective after 2020. The current president of American is looking forward to reduce America-Mexico Trade deficit and accordingly he is hopeful from this agreement. It is expected that in the following six years, the new deal will change NAFTA. Moreover, according to the new agreement it is decided that the USMCA’s trade zone will focus on the manufacturing of the auto parts and according it is decided to manufacture 75% in the region. At the early stage of the NAFTA in 1991 the focus was given by the member countries on the betterment and integration of the Mexico to a highly developed and high wages economies of Canada and United Sates. In this regards, it was decided that to bring rapid growth to the economy of Mexico the freer trade agreement would be very effective by building new jobs and other employment opportunities for the increasing number of workforce of the Mexico. With this economic development, the illegal immigration will reduce from Mexico to its neighboring countries . Furthermore, Canada and America both looks positively towards the opportunities available in the market in terms of low cost investment opportunities and to increase their export to the Mexico that would give a rise to the economy of Canada and America 

    The story of the free trade agreement was first started by an agreement between the Canada and United states when both countries successfully completed their agreement in 1988 and interestingly they included Mexico in the following agreements. NAFTA’s critics raised question over the differentials of wages in Mexico and claimed that the country only has 30% per capita income as compare to the united state. The president of US responds to the critics that the freer trade would not be beneficial as he was afraid that it would lead to a “giant sucking sound”. On the other hand, the later presidents such as Bush and Clinton were fond of the agreement and they believe that this agreement would be effective, as they would create many employment opportunities. On the other hand, the Mexican president also hoped from this opportunity, as he believed that with this platform Mexico would bring modernization that would be greatly advantageous for the economy of the Mexico. He hoped that new jobs would produced and exports of the country will increase and new investment would come to the country. He record his reaction through a famous phrase as he said that with this agreement “Mexico would export goods, not people”. Following this, in the US the NAFTA increase the employment opportunities in the country and enabled the country to improve its trade at great extent .

        Majority of the economist in the region are agreed on the fact that NAFTA brought great development to the North American region by increasing the trade opportunities in the region as from 1993 to 2016 the trade have considerably increased from $290 billion to $1.1 trillion. US made considerable direct investment in Mexican low cost market and the FDI rapidly grow in this period from $15 billion to $100billion or more. Following this, the economist said that the NAFTA have brought great technological and infrastructural change to the region that have improve the overall condition at great extent as compare to the past. In the current situation, there are companies that are taking opportunities from Mexican market but some others are also facing some challenges due to the increase in the market competition .