Although President Donald Trump warned Canada on September 1 that he would exclude them from a new trade deal if Canada did not comply with its demands, it is not clear that the Trump administration has the power to do so without congressional approval. [145]:34-6[146][148][148] According to reports by the Congressional Research Service (CRS), one was published in 2017 and another on July 26, 2018, it is likely that President Trump would need congressional approval for fundamental changes to NAFTA before the changes are implemented. [145]:34-6[149] The impetus for a North American free trade area began with U.S. President Ronald Reagan, who made the idea part of his campaign by announcing his candidacy for president in November 1979. [15] Canada and the United States signed the Canada-U.S. Free Trade Agreement in 1988, and shortly thereafter, Mexican President Carlos Salinas de Gortari decided to address U.S. President George H.W. Bush to propose a similar agreement to make foreign investment after the Latin American debt crisis. [15] When the two leaders began negotiations, the Canadian government of Prime Minister Brian Mulroney feared that the benefits that Canada had gained through the Canada-U.S. free trade agreement would be undermined by a bilateral agreement between the United States and Mexico, and asked to be associated with the U.S.-Mexico talks. [16] However, not all of Mexico`s experiences with NAFTA were bad.

The country has become a hub of automotive production, with General Motors (GM), Fiat Chrysler (FCAU), Nissan, Volkswagen, Ford Motor (F), Honda (HMC), Toyota (TM) and dozens of others operating in the country – not to mention hundreds of parts manufacturers. These industries, as well as others, owe some of their growth to more than four times the real growth in foreign direct investment in the United States (FDI) in Mexico since 1993. On the other hand, FDI in Mexico lags behind other Latin American countries as a percentage of GDP, according to Castaeda, from all sources, for which the United States generally contributes the largest contributor. NAFTA has also contributed to increased income inequality and lower relative wages for non-graduate workers in the United States, which accounted for 72.1% of the labour force in 2001 (Mishel et al. 2003, 163). However, NAFTA is only a contribution to a process of globalization and growing structural trade deficits that has marked the United States.