Mexico has lower wages and not stricter labour laws.
-Comparative cost of production is low, and these are being sold in USA==> Counterproductive to USA and job losses in USA

Canda put severe restrictions on USA on import of diary prodcts under NAFTA>>Unfair for USA

In return U.S.A left unchanged the dispute
settlement provisions, which Canada quiteoften used to resolve the trade conflicts and
to defend against U.S anti-dumping andcountervailing duties

It adds provisions to prevent Hmanipulation"
of the trade rules, including coveringcurrency values, and controls over outside
countries trying to take advantage of the duty-free market.

If the US imposes a 25% global tariff on car
imports, Canada and Mexico have a quota of2.6 million cars they can export to the US as
a protection for their car industry.

In addition, 40% of the car parts of vehicles
produced in the three Countries must be made in North America.

Competetive edge for Mexico is gone due to fixed labour wages now, and this makes North America a
tough place to do business.

The deal does not do anything new to
promote the cause of free trade among theNorth American nations, but it achieves the
objective of averting any significant damageto the international trade system

The present one attempts to micromanage
trade in a way that benefits specific interestgroups at the cost of the overall economy.

The new labour regulations and rules of
origin will add to the cost of production ofgoods such as cars, thus making them
uncompetitive in the global market

Foreign investors may now have fewer
protections from unfriendly local laws as theaccord does away with resolutions through
multilateral dispute panels for certain sectors