Are countries better able to negotiate free trade agreements, given that there are the following points? In accordance with these original requirements, products obtained entirely in North America, such as. B minerals extracted from the soil, are unquestionably compliant with these provisions. However, products that embody parts or materials from overseas need to be radically redesigned in North America to meet the NAFTA processing requirements. NAFTA not only improves current origin requirements, but also ensures that non-U.S. countries do not use Mexico as an export platform to gain preferential access to U.S. markets. To qualify for NAFTA tariff processing, goods and vehicles entering the United States from Mexico must contain at least 62.5% North American content, based on the net cost formula. This promotes the use of North American auto parts. According to the U.S. International Trade Commission, the resulting increase in U.S. auto parts production will increase U.S. competitiveness.
There are a large number of trade agreements; some are quite complex (the European Union), while others are less intense (North American free trade agreement).  The resulting degree of economic integration depends on the specific type of trade pacts and policies adopted by the trade bloc: at that time, leaders of the U.S. textile industry, generally opposed to free trade, were at the forefront of promoting NAFTA. Apart from the leaders of a few companies, the textile industry saw free trade with Mexico as opening up a large market for its business. The textile factory sector in Mexico was not well developed. As a result, Mexico represented a potential 25% increase for U.S. textile producers. To allay fears of possible job losses in the United States, the boards of the American Textile Manufacturers Institute (ATMI) have promised that they will not relocate their jobs, factories or facilities to Mexico. Strong support from textile leaders for NAFTA has led some members of Congress in major textile-producing countries to vote in favor of the agreement.
To the detriment of the United States, the fast lane has not been renewed in a few years. As a result, the United States has not been able to successfully negotiate new trade agreements and is losing to the countries that have done so. For example, as the highway was not renovated, Canada and Chile established a trade agreement that allowed for freer access to markets in other countries. This has hurt American businesses and workers, particularly in telecommunications and fresh fruit. Many other trade pacts, some of which involve countries in Europe and Latin America, are being negotiated or have been concluded without the participation of the United States. In 1997, Mexico followed Canada for the first time as the second largest export destination for the United States, relegating Japan to third place. And the America`s proposed Free Trade Agreement (FTA), which extends all NAFTA benefits to Mexico and Canada to the rest of Central and South America, would further strengthen cooperation among Western Hemisphere nations.