Under the leadership of President Donald J. Trump, the United States renegotiated the North American Free Trade Agreement and replaced it with an updated and balanced agreement that works much better for North America, the U.S.-Mexico-Canada Agreement (USMCA), which came into effect on July 1, 2020. The USMCA is a mutually beneficial benefit to workers, farmers, farmers and businesses in North America. The agreement creates more balanced and reciprocal trade that supports high-paying jobs for Americans and cultivates the North American economy. Additional ancillary agreements have been adopted to allay concerns about the potential impact of the treaty on the labour market and the environment. Critics feared that U.S. and Canadian companies in Mexico would have generally low wages, which would lead to a shift of production to Mexico and a rapid reduction in manufacturing employment in the United States and Canada. Meanwhile, environmentalists were concerned about the potentially catastrophic effects of rapid industrialization in Mexico, which does not have experience in implementing and enforcing environmental legislation. Possible environmental problems were raised in the North American Environmental Cooperation Agreement (NAAEC), which established the Commission for Environmental Cooperation (CEC) in 1994. A series of government studies have drawn increasing attention to the possibility of bilateral free trade negotiations: Look Outward (1975) by the Economic Council of Canada; several reports of the Senate Standing Committee on Foreign Affairs (1975, 1978 and 1982); and the 1985 Macdonald Commission report (formally the Royal Commission for Economic Union and Development Prospects for Canada), chaired by former Liberal politician Donald Stovel Macdonald. Macdonald said that “Canadians should be prepared to leap faith”[12] and pursue more open trade with the United States.

Although Macdonald was a former Liberal finance minister, the Commission`s results were adopted by Prime Minister Brian Mulroney`s Progressive Conservative Party, although they voted against a free trade initiative during the 1984 Canadian election campaign. The milestones for the start of free trade negotiations have been laid. [13] The exact effects of the agreement are difficult to measure. Trade between Canada and the United States, which had already increased, accelerated after the signing of the agreement. [20] While exports accounted for about 25% of Canada`s gross domestic product (GDP) over the entire 20th century, exports have accounted for about 40% of GDP since 1990. After the year 2000, they reached almost 50%. [21] Often, analyses of the free trade agreement show that its effects on both countries depend on the difference in value between the Canadian dollar and the U.S. dollar. In 1990-91, the Canadian dollar rose sharply against the U.S.

dollar, making Canadian industrial products much more expensive to purchase U.S. products and making U.S. industrial products significantly cheaper for Canadians who no longer had to pay high tariffs on them. The growth of international trade has led to a complex and increasingly broad primary law, including international treaties and agreements, national legislation and trade dispute settlement jurisprudence.