The passage of NAFTA led to the elimination or elimination of barriers to trade and investment between the United States, Canada and Mexico. The impact of the agreement on issues such as employment, the environment and economic growth has been the subject of political debate. Most economic analyses have shown that NAFTA is beneficial to North American economies and the average citizen, but harms a small minority of workers in industries exposed to commercial competition.   Economists believed that leaving NAFTA or renegotiating NAFTA in a way that would have restored trade barriers would have impacted the U.S. economy and expensive jobs. T92   However, Mexico would have been much more affected by job losses and a decline in economic growth, both in the short and long term.  In June 1986, Edward L. Hudgins, then an analyst at Heritage, wrote, “An American strategy to solve the Mexican debt crisis.” In this context, Hudgins called on the Reagan administration to explore “other special free trade and investment agreements” with Mexico. Hudgins said: “The possibility of a comprehensive free trade and investment area [between the United States and Mexico] should be examined. Ultimately, a comprehensive free trade area between the U.S. and Mexico should be sought, similar to the U.S.-Canadian PACT being negotiated [at the time]. Fourth, NAFTA has established procedures to resolve trade disputes.
The parties would begin with a formal discussion, followed by a discussion at a meeting of the Free Trade Commission, if necessary. If the disagreement was not resolved, a committee reviewed the dispute. The process allowed all parties to avoid costly lawsuits in local courts and helped them interpret the complex rules and procedures of NAFTA. This protection against trade disputes also applied to investors. The law was developed under the development of George H. W. Bush`s presidency as the first phase of his Enterprise for the Americas initiative. The Clinton administration, which signed NAFTA in 1993, believed it would create 200,000 U.S.
jobs within two years and 1 million within five years, as exports play an important role in U.S. economic growth. The government expected a dramatic increase in U.S. imports from Mexico due to lower tariffs. In 1984, Congress passed the Trade and Customs Act, which gave the president the power to negotiate free trade agreements. He only allowed Congress to approve or reject, and he could not change the negotiating points. After all, the 2008 financial crisis had a profound impact on the global economy, making it difficult to determine the impact of a trade deal. Outside of some industries where the effect is not yet entirely clear, NAFTA has had a small obvious impact on North American economies. .