The major Mexican capital also moved to the United States, where Mexican investment reached $16 billion last year – the level of U.S. investment in Mexico in 1994, when NAFTA came into effect. Some of these groups brought the anti-worker policy they had carved at home. Grupo Mexico, a Mexican subsidiary of the American Smelting and Refining Company (ASARCO), grew faster than its parent company. Under the leadership of the Larrea family, it has acquired U.S. shareholders, owning mines in Arizona and the Southwest, where it is now attempting to impose the same destructive cuts to American miners it imposed on its Mexican mines, Cananea and Nacozari. El Super, a division of Mexican retail Chedraui, has become a major supermarket chain in Southern California, which is fighting with UFCW (the main supermarket workers` union) and trying to operate as many stores as possible without unions. The free trade agreement was concluded in 1988 and NAFTA extended most of the provisions of the free trade agreement to Mexico. NAFTA was negotiated by the governments of U.S. President George H.W. Bush, Canadian Prime Minister Brian Mulroney and Mexican Prime Minister Carlos Salinas de Gortari. An interim agreement on the pact was reached in August 1992 and signed by the three heads of state and government on 17 December. NAFTA was ratified by the national parliaments of the three countries in 1993 and came into force on January 1, 1994.
The kick-off of a North American free trade area began with U.S. President Ronald Reagan, who made the idea part of his 1980 presidential campaign. After the signing of the Canada-U.S. Free Trade Agreement in 1988, the governments of U.S. President George H.W. Bush, Mexican President Carlos Salinas de Gortari and Canadian Prime Minister Brian Mulroney agreed to negotiate nafta. Both submitted the agreement for ratification in their respective capitals in December 1992, but NAFTA faced considerable opposition in both the United States and Canada. The three countries ratified NAFTA in 1993 following the addition of two related agreements, the North American Worker Cooperation Agreement (NAALC) and the North American Environmental Cooperation Agreement (NAAEC). In early 2020, the U.S. Congress approved the USMCA with large bipartisan majorities in both chambers, and the agreement came into effect on July 1.
Nevertheless, some critics have complained that the new rules of origin and minimum wage requirements are cumbersome and boil down to state-run exchanges. Alden of CFR was blood pressure and said that the government could recognize the restoration of cross-party cooperation in U.S. trade policy. But he warns: “If this new mix of Trump nationalism and democratic progressivism is what it takes now to conclude trade agreements with the United States, there could be very few buyers.” Critics of NAFTA often focus on the U.S. trade balance with Mexico. While the United States enjoys a slight advantage in services trade by exporting $30.8 billion in 2015 while importing $21.6 billion, the trade balance with the country is generally negative, due to a yawning deficit of $58.8 billion in merchandise trade in 2016. This represents a surplus of $1.7 billion in 1993 ($36.1 billion in 1993). The debates on the treaty, which took place at the same time as the disintegration of the Soviet Union, also contributed to the american labour movement`s support for free trade policy and its opposition to the more radical unions of other nations. Over the past two decades, the labour movement has moved towards new principles of solidarity with trade unions in other nations. After U.S. President Donald Trump took office in January 2017, he tried to replace NAFTA with a new agreement and began negotiations with Canada and Mexico.