According to a study published in the Journal of International Economics, NAFTA reduced U.S. manufacturing pollution: “On average, nearly two-thirds of U.S. manufacturing reductions in coarse particulate matter (PM10) and sulphur dioxide (SO2) between 1994 and 1998 can be attributed to trade liberalization to NAFTA.”  Nevertheless, the “Most Favored Nation” (MFN) clause played an important role in NAFTA. Under NAFTA, all co-signed countries are granted MFN status, which means that they have to treat all parties on a single level in terms of trade. Thanks to the MFN, countries are not allowed to favour investors from non-NAFTA countries or to show greater favours towards foreign investors. In fact, they all have to be treated the same in the agreement. Long-standing support for free trade with Mexico. Ronald Reagan first proposed a free trade agreement between the United States and Mexico during his presidential campaign in 1980. Since then, the Heritage Foundation has been proud of the role it has played in shaping President Reagan`s vision of free trade in Latin America and around the world. Since the mid-1980s, heritage analysts have pointed out that a free trade agreement with Mexico will not only stimulate economic growth in the United States, but will make Mexico a more stable and prosperous country. Heritage has published more than three dozen studies highlighting the benefits of free trade in North America.
Ross Perot, the 1992 presidential candidate, predicted, as you know, that an agreement like NAFTA would create a “great air” – meaning Mexico is sucking jobs into the United States. U.S. Trade Representative Robert Lighthizer said the Trump administration`s goal was to “stop the haemorrhages” of trade deficits, plant closures and job losses, pushing for tougher labor and environmental protection measures in Mexico and removing “Chapter 19 of the Dispute Settlement Mechanism” – a Canadian favorite and a thorn in the side of the U.S. wood industry. The passage of NAFTA has removed or removed barriers to trade and investment between the United States, Canada and Mexico. The impact of the agreement on issues such as employment, the environment and economic growth has been the subject of political controversy. Most economic analyses have shown that NAFTA has been beneficial to North American economies and the average citizen, but has been detrimental to a small minority of workers in sectors subject to trade competition.   Economists have estimated that the withdrawal from NAFTA or the renegotiation of NAFTA, in a way that would have created restored trade barriers, would have affected the U.S. economy and cost jobs.    However, Mexico would have been much more affected, both in the short term and in the long term, by the loss of jobs and the reduction of economic growth.  The victory of NAFTA is a great victory for the Conservatives in free trade. They were the ones who first defended free trade with Mexico.