A Potential Negative Result Of Trade Agreements Is Brainly

Finally, we do not expect the coronavirus to lead to new trade tensions between the United States and China. In the recently signed Phase One agreement between China and the United States, China committed to increasing imports of U.S. goods and services by €200 billion over the next two years (compared to the level of imports of U.S. goods and services in 2017). With a potentially significant slowdown caused by the virus, China could not keep that promise. If that is the case, we expect a moderate response from the United States. Phase One Agreement is clear on the occurrence of unexpected events or disasters (Article 7.6): « In the event that a natural disaster or other unforeseeable event beyond the control of the Parties prevents a Party from fulfilling its obligations under this Agreement in a timely manner, the Parties shall consult with each other. » The North American Free Trade Agreement (NAFTA) was signed by Canada, Mexico and the United States on December 17, 1992. It entered into force on 1 January 1994. The agreement eliminated tariffs on products traded between the three countries.

One of the goals of NAFTA was to integrate Mexico into the advanced economies of the United States and Canada, in part because Mexico was seen as a lucrative new market for Canada and the United States. The three governments also hoped that the trade deal would improve the Mexican economy. Finally, if the mobility of human capital, foreign investor sentiment and trade are negatively affected over a long period of time, this will also have a negative impact on productivity growth and the technological catch-up process. . . .