Do we analyze whether a bilateral or multilateral trade agreement would better serve the interests of the United States? This makes multilateral agreements unpopular. Multilateral agreements are difficult to implement. Another problem in multilateral agreements is that other countries are attacking the United States and imposing requirements that harm the United States. The third drawback is common to any trade agreement. Some companies and regions of the country are suffering from the disappearance of trade borders. Some regional trade agreements are multilateral. The most important was the North American Free Trade Agreement (NAFTA), ratified on January 1, 1994. NAFTA quadrupled trade between the United States, Canada and Mexico from 1993 to 2018. The Agreement between the United States, Mexico and Canada (USMCA) entered into force on July 1, 2020.
The USMCA was a new trade deal between the three countries, negotiated under President Donald Trump. They do not have as much influence on economic growth as a multilateral agreement. Multilateral treaties should increase trade. However, they have not been able to provide the trade benefits expected by the United States. As a result of NAFTA, many U.S. manufacturing jobs went to Mexico, which eroded many industrialized countries after NAFTA came into force. The various intellectual property treaties and the WTO agreement are totally ineffective. This could explain President Trump`s shift from a supporter of multilateral treaties to bilateral agreements. China is the main violator of the WTO and intellectual property agreements. In the first 15 years of WTO membership, only China achieved a unilateral win-win outcome and not a win-win situation with the US and the rest of the world. In September 1986 began in Punta del Este, Uruguay Round, which focused on extending trade agreements to several new territories.
These include services and intellectual property. It has also improved trade in agriculture and textiles. The Uruguay Round led to the creation of the World Trade Organization. On 15 April 1994, the 123 participating governments signed the WTO Agreement in Marrakesh, Morocco. The WTO has taken the lead in future global multilateral negotiations. Article 8 of the Convention (bilateral and multilateral cooperation) provides that “the Parties may continue existing bilateral or multilateral agreements or other existing arrangements or conclude new bilateral or multilateral agreements or other arrangements to fulfil their obligations under this Convention. Such agreements or other arrangements may be based on the elements listed in Annex VI (elements of bilateral and multilateral cooperation). Access for the EU food industry to non-EU markets also depends on trade agreements and international negotiations, including those of the World Trade Organisation (WTO). The fourth disadvantage lies in small businesses in a country. A multilateral agreement gives a competitive advantage to huge multinationals. They are already familiar with the action in a global environment.
As a result, small businesses cannot compete. They lay off workers to cut costs….