A central theme for the 115th Congress is the direction of U.S. trade policy under the Trump administration, particularly the planned renegotiation of NAFTA. Congress could consider how NAFTA could be modernized and renegotiated, the role of Congress in future renegotiations, the negotiating positions of Mexico and Canada, and the consequences of a possible EXIT from NAFTA. Congress could also consider new “21st Century” issues raised in recent U.S. free trade agreements, such as the U.S.-Korea Free Trade Agreement and the TPP, and whether these could be potential NAFTA discussions. If the United States withdraws completely from NAFTA, it could lead to serious disruptions in major North American production chains and job losses in all three countries. On the other hand, depending on the decision of the President and Congress, there may be opportunities to verify the successes of NAFTA and to check where it has not met expectations. According to a 2012 study on tariff reductions on NAFTA, trade with the United States and Mexico increased by only 11% in Canada, compared to a 41% increase in the United States and 118% in Mexico. :3 In addition, the United States and Mexico benefited more from the rate reduction, with an increase in social benefits of 0.08% and 1.31%, with Canada recording a decrease of 0.06%. :4 Shortly after the start of his presidency, President Clinton addressed environmental and labour issues through formal secondary agreements with his Canadian and Mexican counterparts.
NAFTA laws contained provisions for ancillary agreements authorizing U.S. participation in NAFTA Labour and Environment Commissions and funds for those activities. The North American Agreement on Occupational Health and Safety Cooperation (NAALC) and the North American Agreement on Environmental Cooperation (NAAEC) were signed on 1 January 1994 on the same day as NAFTA.34 NAFTA legislation also included two adaptation assistance programs aimed at reducing trade-related labour pressure and adaptation pressure. NAFTA-TAA and the U.S. Adjustment and Investment Program (U.S. Community). “The USMCA will provide our workers, farmers, ranchers and businesses with a quality trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class and create good, well-paying jobs and new opportunities for the nearly half a billion people who call North America home. Renegotiating other NAFTA provisions, which would require changes to U.S.
legislation, would likely require enforcement legislation. This legislation could be considered under THE AES.89, the limited power that Congress uses to set trade negotiation objectives, set notification and consultation requirements, and adopt draft implementation of certain reciprocal trade agreements that will be reviewed through expedited procedures, provided certain requirements are met. The TPA is currently in effect until July 1, 2021, provided that Congress does not pass a resolution rejecting the extension in the sixty days prior to July 1, 2018. Under the AFN, the President can begin negotiations when the three NAFTA signatories have agreed to remove barriers to trade between them. By removing tariffs, NAFTA has increased investment opportunities. Mr. Trudeau and Canadian Foreign Minister Chrystia Freeland announced that they would join the agreement if it was in Canada`s interest.  Freeland returned prematurely from his European diplomatic trip and cancelled a planned visit to Ukraine to participate in the NAFTA negotiations in Washington, D.C.