For the first time since the Industrial Revolution, less than<u> 10 </u>percent of the American workforce was employed by manufacturing.
Since the signing of the North America Free Trade Agreement (NAFTA) by Mexico, the United States, and Canada in January 1993, many automobile manufacturers have relocated their operations to Mexico. There have been many benefits and drawbacks for the three countries as part of the free trade agreement recently revised by the Congress of the three countries and now known as USMCA, United States, Mexico, and Canada Agreement. Manufacturing jobs in the automobile industry have declined significantly in the United States
<h3>What is
North America Free Trade Agreement (NAFTA)?</h3>
The North American Free Trade Agreement (NAFTA), which was enacted in 1994 and established a free trade zone for Mexico, Canada, and the United States, is the most important feature of the bilateral commercial relationship between the United States and Mexico. Under the North American Free Trade Agreement, all tariffs and quotas on US exports to Mexico and Canada were eliminated on January 1, 2008. (NAFTA).
<h3>What are the pros and cons of the NAFTA agreement?</h3>
- NAFTA's positive effects included increased trade, economic output, foreign investment, and lower consumer prices.
- When domestic manufacturers relocated to lower-wage Mexico, wages in US manufacturing plants were also reduced.
- Renegotiations of NAFTA in 2018 resulted in the United States-Mexico-Canada Agreement (USMCA), which went into effect in July 2020. The USMCA addresses some issues of the twenty-first century, such as digital trade and the environment.
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