Although NAFTA has not kept all its promises, it has remained in place. Indeed, in 2004, the Central American Free Trade Agreement (CAFTA) extended NAFTA to five Central American countries (El Salvador, Guatemala, Honduras, Costa Rica and Nicaragua). In the same year, the Dominican Republic joined the group in signing a free trade agreement with the United States, followed by Colombia in 2006, Peru in 2007 and Panama in 2011. The Trans-Pacific Partnership (TPP), signed on October 5, 2015, represented an extension of NAFTA to a much larger extent. According to a report by the New York City public tank report, Council on Foreign Relations (CFR), bilateral agricultural trade tripled between 1994 and 2017 and is considered one of the main economic effects of NAFTA on trade between the United States and Canada, with Canada becoming the largest importer of U.S. agricultural sectors. [64] Fears of job losses in the U.S. manufacturing sector were not due to the fact that manufacturing employment remained “stable”. Given Canada`s labour productivity, which rose to 72% of the U.S.

level, hopes of closing the “productivity gap” between the two countries were also not realized. [64] This classification system allows for greater flexibility than the CLC`s four-digit structure, by establishing a six-digit hierarchical coding system and dividing all sectors into 20 branches. Five of these sectors are primarily those that produce goods, the other 15 being exclusively those that provide some type of service. Each company receives a primary NAICS code indicating its main line of business. A company receives its main code based on the definition of the code, which generates most of the company`s revenue on a site reported last year. The North American Free Trade Agreement (NAFTA) was implemented to promote trade between the United States, Canada and Mexico. The agreement, which removed most tariffs on trade between the three countries, came into force on 1 January 1994. Between 1 January 1994 and 1 January 2008, many tariffs – notably for agriculture, textiles and automobiles – were phased out. According to a 2012 study on tariff reductions on NAFTA, trade with the United States and Mexico increased by only 11% in Canada, compared to a 41% increase in the United States and 118% in Mexico. [63]:3 In addition, the United States and Mexico benefited more from the rate reduction, with an increase in social benefits of 0.08% and 1.31%, with Canada recording a decrease of 0.06%. [63]:4 Second, NAFTA eliminated many tariffs on imports and exports between the three countries.

Tariffs are taxes that are used to increase the cost of foreign goods. NAFTA has developed specific rules to regulate trade in agricultural products, motor vehicles and clothing. Growth in order inflows reported an increase in demand for manufactured goods, resulting in increased production and a higher employment rate to meet increases in demand. Growth in the maquiladora and manufacturing industries reached 4.7% in August 2016. [80] Three-quarters of imports and exports are under U.S. NAFTA was the world`s largest free trade agreement when it was established on January 1, 1994. NAFTA was the first time that two industrialized countries had signed a trade agreement with an emerging country.