Many small U.S. companies under NAFTA depended on exporting their products to Canada or Mexico. According to the U.S. Trade Representative, this trade has supported more than 140,000 small and medium-sized enterprises in the United States.  According to a 2018 Sierra Club report, Canada`s NAFTA and Paris Agreement commitments have been met. The Paris commitments were voluntary and NAFTA was mandatory.  According to a 2017 report by the New York City public public tank report, Council on Foreign Relations (CFR), bilateral trade in agricultural products 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 the U.S. agricultural sector.  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.  Negotiations focused „primarily on car exports, steel and aluminum tariffs, as well as the milk, egg and poultry markets.” A provision „prevents any party from enacting laws that restrict the cross-border flow of data.”  Compared to NAFTA, the USMCA increases environmental and labour standards and encourages domestic production of cars and trucks.  The agreement also provides up-to-date intellectual property protection, gives the U.S. more access to the Canadian milk market, imposes a quota for Canadian and Mexican auto production, and increases the customs limit for Canadians who purchase U.S. products online from $20 to $150.  The full list of differences between USMCA and ALEFTA is listed on the Website of the United States Trade Representative (USTR).  This agreement is the result of a renegotiation between the member states of the North American Free Trade Agreement between 2017 and 2018, which formally approved the terms of the new agreement on 30 September 2018 and 1 October.  The USMCA was proposed by U.S. President Donald Trump and signed on November 30, 2018 by Trump, Mexican President Enrique Pea Nieto and Canadian Prime Minister Justin Trudeau as a secondary event of the 2018 G20 summit in Buenos Aires. A revised version was signed on December 10, 2019 and ratified by the three countries, with final ratification (Canada) taking place on March 13, 2020 just before the Canadian Parliament adjourned due to the COVID-19 pandemic. Overall, Canada has become more dependent on trade with the United States and has based its southern neighbour on 75 per cent of its exports. Other high-income countries tend to be much more diverse and rarely rely more than 20% on a single partner.
U.S. presidents have long,s warm relationships with Canadian prime ministers, but Mr. Trump has not hesitated to use that dependency as leverage. As part of the USMCA talks, he threatened to impose new tariffs on Canadian auto parts if Ottawa did not accept trade concessions. Many workers and union leaders blame trade agreements such as NAFTA for declining employment in U.S. production. The U.S. auto sector has lost about 350,000 jobs – one-third of the industry – since 1994, while employment in Mexico`s auto sector has grown from 120,000 to 550,000. The Clinton administration negotiated an environmental agreement with Canada and Mexico, the North American Environmental Cooperation Agreement (NAAEC), which led to the creation of the Commission for Environmental Cooperation (CEC) in 1994.