US economy and effect cause of NAFTA negotiation.

The date for negotiation on NAFTA will be by today that Wednesday as decided at Washington.

Here one major question is of President Trump test will be 100 days of successful office work like tasting water.  As US Canada and Mexico are at assemble to modernize the NAFTA (North American Free Trade Agreement).To prove that negotiators can give adequate detail to help new NAFTAwill alter the course , about President Trump remarked  on  NAFTA is to be blamed for shuttering US factories an sending Us job to low wage Mexico. The President Trump who had made trade as the centerpiece of his presidential campaign as he promised to reinvigorate the manufacturing g sector and NAFTA which is he labeled as on one of the disaster or “the worst trade deal” US ever signed.

What is NAFTA about? Well it stands the north American free trade agreement to lifts tariffs (taxes on imports and exports) on all goods traded among the US, Canada and Mexico. This NAFTA came into effect from January1, 1994 as signed on December 17, 1992 by three countries. The aim was from NAFTA to make easier for companies in the three countries to do business across the borders, by boosting economic integration, there will be boost to economic prosperity in all countries.

The President Trump put about lost jobs in US on the shoulder of NAFTA, while researchers have found mixed effects on the US labour force. Some industries have gown down while other have prospered.

The reports Economic policy institute said in 2013 some 700,000 jobs had been lost as production moves to Mexico –with California, Texas, and Michigan among the worst hit states.

And according to nonpartisan report by congress published in 2015 said “NAFTA did not cause the huge job losses feared by the critics or the large economic gains predicted by supports” so was loss no gain zone.

So it was difficult to put finger on NAFTA for job loss, Economists note that manufacturing employment was already in decline before NAFTA was signed. The decline can be attributed to automation in US industry; Companies have been able to increase output with fewer workers.   Also US tariff cuts on Mexican trade under NAFTA were implemented at roughly the same time around as tariff cut with most countries as the US entered the World trade organization in 1995.Competition from Chinese exports increase during same time period and boomed as china joined the WTO 2001 US loosing job to china is much in effect then to Mexico says the Al Jazeera reports.

According the council on Foreign relation (CFR) NAFTA gave major boost to Mexican farm exports to the US have tripled , auto manufacturing job have also been created and studies show positive impact on Mexican productivity and consumer prices. Same was seen as per Canada also according to CFR since 1993 US and Mexican investments in Canada have also tripled its result.

Tech world Microsoft and Cisco system ramped up lobbying ahead of the talk to renegotiate the NAFTA looking to avoid any further restriction. Devi kelller director of global policy for the Semiconductor Industry Association said “it both defensive and offensive. There is an opportunity for expansion.” Tech industry associations have sent letters to Trump administration asking negotiators to prioritize free flows of data and low tariffs as well as global cyber security standards and have met with staff at the US trade representative.

The representative from Canada say that there was political commitment from all sides to reach a deal, that is not the case now. Holleyman US trade representative said the toughest nut to crack phrase in talks will be whether changes meet Trumps goals to reduce the $64 billion Us trade deficit with Mexico, as it weighing heavily over the talks in upcoming 2018 election as Mexico urges all side to complete the negotiations before the campaign ramps up in February to avoid making political punch bag.

Thus US $64 billion trade deficit with Mexico will be of top priority in NAFTA talks but all have their own agenda like Mexico goal for free goods and services greater labour market integration and strengthening of energy security, while Canada suggested would walk away from the talks if the US insisted on scrapping the mechanism. Meeting is on let see what to face up next.