Why We Need the USMCA (the agreement formerly known as NAFTA)
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DescriptionThe North American Free Trade Agreement (NAFTA) fundamentally changed the economic relationship between US and Mexican workers. Research suggests that prior to NAFTA, Mexican and US workers competed for jobs in manufacturing, but now Mexican workers are best described as complements to US workers, and that North America is more accurately described as a single production unit where jobs grow (or shrink) on both sides of the border simultaneously. This issue of The Takeaway argues that after nearly 25 years of NAFTA, we now live in a truly integrated North American economy. Ending NAFTA, or not approving the United States-Mexico-Canada Agreement (USMCA), is unlikely to reverse North American economic integration, but would raise costs for those sharing production across borders, making it harder to export our products to the rest of the world.
Robertson, Raymond (2018). Why We Need the USMCA (the agreement formerly known as NAFTA). Mosbacher Institute for Trade, Economics & Public Policy. Available electronically from