1. In the event of inconsistency between this agreement and the concrete trade commitments set out in it, neither the worst fears of Canadian trade opponents – that trade opening would erode the country`s manufacturing sector – nor the greater hopes of NAFTA proponents – that they will cause a rapid increase in productivity – have materialized. Employment in Canada`s manufacturing sector has remained stable, but the productivity gap between the Canadian and U.S. economies has not been closed: until 2017, Canada`s labour productivity remained at 72% of the U.S. level. In 1984, Congress passed and concluded the Trade and Tariff Act, which was itself based on the old Trade Act of 1974. The Act gave “rapid” power to negotiate bilateral free trade agreements and streamline negotiations. The U.S. record on services trade with Canada is positive: it imported $28.8 billion in 2015 and exported $56.1 billion. Its trade balance is negative – the United States imported $22.6 billion more worth of goods from Canada than it exported in 2017 – but the services trade surplus overshadows the goods trade deficit. The total U.S. trade surplus with Canada in 2018 was $9.1 billion.
Shortly after his election, U.S. President Donald Trump said he would begin renegotiating Nafta`s terms to resolve the trade issues he had fought for. The heads of state and government of Canada and Mexico have expressed their willingness to cooperate with the Trump administration.  Although he vaguely formulated the precise terms he wants in a renegotiated NAFTA, Trump has threatened to withdraw from it if negotiations fail.  The OBJECTIVE of NAFTA was to remove barriers to trade and investment between the United States, Canada and Mexico. The implementation of NAFTA on January 1, 1994 resulted in the immediate removal of tariffs on more than half of Mexican exports to the United States and more than one-third of U.S. exports to Mexico. Within 10 years of the implementation of the agreement, all U.S.-Mexico tariffs should be eliminated, with the exception of some U.S. agricultural exports to Mexico, which are expected to expire within 15 years.  Most of the trade between the United States and Canada was already duty-free. NAFTA also aimed to remove non-tariff barriers and protect intellectual property rights on marketed products. After Donald Trump`s presidential election, a number of trade experts said that exiting NAFTA, as Proposed by Trump, would have a number of unintended consequences for the United States, including limited access to the largest U.S.
export markets, reduced economic growth and higher prices for gasoline, cars, fruits and vegetables.  The textile, agriculture and automotive sectors would be most affected.   A 2007 study showed that nafta had “a significant impact on the volume of international trade, but a modest impact on prices and well-being.”  An October 2017 article in The Globe and Mail in Toronto questioned the U.S. willingness to renegotiate or commit to the agreement, no matter what, and noted that the newly appointed U.S. Ambassador, Kelly Craft Knight, is married to the owner of Alliance Resource Partners, a major U.S. coal operation.