One of the most affected agricultural sectors was the meat industry. Mexico became in 2004 the second largest importer of U.S. agricultural products by a small player in the U.S. export market before 1994, and NAFTA may have been an important catalyst for this change. Free trade removed the barriers that hindered business between the two countries, allowing Mexico to offer a growing meat market to the United States and increase revenue and profits for the U.S. meat industry. At the same time, a significant increase in Mexico`s GDP per capita has significantly changed meat consumption patterns due to the increase in per capita meat consumption. [70] Many economists argue that current levels of TaA funding are far from sufficient to cope with the increase in job losses due to trade. “There are bags that have felt a lot of pain,” Hanson says. “The existence of these pockets underscores our political failure to help regions and individuals adapt to the effects of globalization.” 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 and importing $21.6 billion, its overall trade balance with the country is negative due to a yawning deficit of $58.8 billion in merchandise trade in 2016. Compared to a surplus of $1.7 billion in 1993 (in 1993, the deficit was $36.1 billion in 2016). In 2015, the Congressional Research Service concluded that “the overall net impact of NAFTA on the U.S. economy appears relatively modest, primarily because trade with Canada and Mexico accounts for a small percentage of U.S. GDP. However, there have been adaptation costs for workers and businesses as all three countries have prepared for more open trade and investment between their economies. “The report also estimates that NAFTA has added $80 billion to the U.S.

economy since its launch, representing a 0.5 percent increase in U.S. GDP. [85] After U.S. President Donald Trump took office in January 2017, he attempted to replace NAFTA with a new agreement and began negotiations with Canada and Mexico. In September 2018, the United States, Mexico and Canada reached an agreement to replace NAFTA with the United States,Mexico-Canada Agreement (USMCA) and all three countries had ratified it until March 2020. NAFTA remained in effect until the IMPLEMENTATION OF THE USMCA. [13] In April 2020, Canada and Mexico informed the United States that they were ready to implement the agreement. [14] The USMCA showed up on the 1st.