Nevertheless, the most-favoured-nation (MFN) clause played an important role in NAFTA. Through NAFTA, all co-signed countries obtain the most frequent status, which means that they must treat all parties equally on trade. Thanks to the most-favoured nation, countries should not favour investors from non-NAFTA countries or show more favour towards foreign investors. In principle, they should all be treated in the same way in the agreement. In 1992, NAFTA was signed by outgoing President George H.W. Bush, Mexican President Salinas and Canadian Prime Minister Brian Mulroney. At the beginning of the year, the European Union was created by the Maastricht Treaty. On August 27, 2018, Trump and Mexico reached a bilateral trade agreement to replace NAFTA, threatening to leave Canada on the sidelines. Canada joined on September 30, 2018. On 30 An agreement was reached between the three countries on 1 November 2018. The new agreement is called as an agreement between the United States, Mexico and Canada and has been ratified by the legislature of each country. Mexico ratified it on 19 June 2019.

The United States ratified the agreement on January 29, 2020. The Canadian Parliament ratified the USMCA on March 13, 2020. Since its launch, NAFTA has benefited the economy by increasing total trade between countries to well over $1 trillion. The president has also been a notable critic of NAFTA. President Trump claims to want to end NAFTA, in line with his agenda against free trade with Mexico, and also intends to impose a 35% tax on goods such as Ford (F) – Get Report cars produced in Mexico, according to CNN. . . .