The Impact of Trade on Canada-US Relations

Exchange and venture from Canada are dependable for the support of over two million business within the Joined together States, the era of roughly three hundred billion dollars in sends out, and the advancement of thousands of towns over the country. A capable exchange understanding known as the Joined together States-Mexico-Canada Understanding (USMCA) serves as the premise for a more competitive North America much obliged to the profound financial connect that exists between the Joined together States of America and Canada. This association is built on shared values, tight people-to-people connections, and a vigorous exchange assention. Find and talk about the ways in which your state or congressional area might advantage from the participation between Canada and the Joined together States. 

The North American Free Trade Agreement (NAFTA) was a treaty that came into force on January 1, 1994, and it was designed to remove the majority of trade obstacles that existed between the United States of America, Canada, and Mexico. There were some of its provisions that were immediately put into effect, while others were implemented gradually over the course of the subsequent 15 years. During the course of his campaign, Donald Trump, the current President of the United States, railed against it and made a promise to renegotiate the agreement and "tear it up" if the United States was unable to obtain the concessions that it desired. To bring the North American Free Trade Agreement (NAFTA) up to date, the United States, Mexico, and Canada (USMCA) was approved in the year 2020.

How will the new trade agreement between the United States of America, Canada, and Mexico effect you?

My perspective as a Canadian resident of Southern Ontario who is 80 years old. In point of fact, it is not the "US-Canada-Mexico" agreement; rather, it is the "US Mexico Canada Agreement," or "USMCA." Changing one's name? The name "NAFTA" was deemed to be a derogatory term solely by President Trump. So he had to come up with a new name that did not include that particular term. The acronym "USMCA" was conceived of by him and pronounced "you smack-er" (OK, my idea). This is directed to Chrystia Freeland of Canada, who outperformed and outplayed Donald Trump throughout the entire process. And it's a woman! Due to this reason, Trump despises her.

For all intents and purposes, the "new NAFTA" is the "old NAFTA" with a few modifications that neither injure nor benefit anyone. The "status quo" is effectively preserved, and a "Don't mess with NAFTA" compromise is reached as a result. That is exactly what each of the three nations desired from the very beginning. Because I am a retired Canadian, it is necessary for me to consider the big picture as a whole. The new agreement works very well for Ontario as a whole. That is the primary focus of our manufacturing, particularly in the areas of automobile assembly and automobile parts. or each of the three countries, both relationships are significant, and the three giants of North America trade and operate increasingly as a block. This means that if you trade with one of them, you are probably also trading with the other two, regardless of which country is listed on the label.

Why does the United States of America have a more favorable relationship with Canada than it does with Mexico?

Near the capitals of each country, there is a shared history on many levels, including language, geography, culture, and a great deal more. However, things are never in a static state. First things first, let's make it quite apparent that the three major powers in North America are very amicable to one another at the present time. I believe that this will continue to be the case, most likely for the rest of our lives, unless there is a totalitarian takeover conducted by someone who has no interest in assisting their own nation. In the same way that Canada has a French-speaking region with a generally defined geographic population (although French can be used everywhere in the country), the United States of America has a (partially) Spanish-speaking region in its Southwest region that also has a roughly defined geographic area. On the other hand, in the big scheme of things, significant choices about foreign policy are made in Mexico City, Ottawa, and Washington, DC, which are the capitals of each country. And Canada has been required to look at the United States first ever since the United States gained its independence. This is due to the fact that the majority of Canada's population is located along the border with the United States. In fact, Ottawa is only a ten-hour drive away from Washington, DC, but Mexico City is a 38-hour trip across country that is sometimes quite sparsely populated.

The Commerce of Destiny

During the renegotiation of NAFTA to USMCA, during a time when Canada was being difficult on a particular topic (green energy targets), it was Mexico and the United States that reached a deal while leaving Canadian negotiators out. They came with that verbiage already ready and with a "take it (the treaty) or leave it" clause, which shocked some sense into Canadian negotiators. This is a curious thing because, despite the fact that all three countries have benefited from the North American Free Trade Agreement (NAFTA), the economies of the United States and Mexico have been integrated the most. At the present time, Canada and Mexico are competing with one another to become the most important commercial partners for the United States. In 2022 and 2023, Mexico will surpass Canada as the most important trading partner for the United States. In addition, the connection and trade between Canada and Mexico is expanding at a rapid pace. Canada is Mexico's fourth major commercial partner, behind the United States of America, China, and Japan after the United States. As they increase their trade, they also increase their direct friendship and it turns out they really do have some things in common - my favorite “geopolitical rib” joke I heard when I visited Canada and showed someone my Mexican passport was an appreciative “Mexicans and Canadians get along so well, we only have one big problem between us”.