The discussion on a common trade area was initiated in 1985 by Canadian Prime Minister Brian Mulroney with the proposal to draft a free trade agreement between Canada and the United States. Negotiations began in 1986 and the two countries signed the agreement in 1988. The Canada-U.S. agreement came into force on January 1, 1989. Maquiladoras (Mexican assembly plants that absorb imported components and produce goods for export) have become the emblem of trade in Mexico. They left the United States for Mexico, hence the debate about the loss of American jobs. Revenues in the maquiladora sector had increased by 15.5% since nafta in 1994.  Other sectors have also benefited from the free trade agreement and the share of non-cross-border exports to the United States has increased over the past five years [when?], while the share of exports from border states has declined. This has led to rapid growth in non-cross-border metropolitan areas such as Toluca, Leén and Puebla, all more populated than Tijuana, Ciudad Juérez and Reynosa. Although President Donald Trump warned Canada on September 1 that he would exclude them from a new trade deal if Canada did not comply with its demands, it is not clear that the Trump administration has the power to do so without congressional approval. :34-6 According to reports by the Congressional Research Service (CRS), one was published in 2017 and another on July 26, 2018, it is likely that President Trump would need congressional approval for fundamental changes to NAFTA before the changes are implemented. : 34-6 On September 30, 2018, the deadline for negotiations between Canada and the United States, an interim agreement was reached between the two countries, thus retaining the trilateral pact if the Trump administration presents the agreement to Congress.
 The new name of the agreement was the United States-Mexico-Canada Agreement (USMCA) and came into force on July 1, 2020.   Fifth, all NAFTA countries were required to respect patents, trademarks and copyrights. At the same time, the agreement ensured that these intellectual property rights did not affect trade. The trade agreement provided rules for the settlement of trade disputes between investors, companies and participating countries. The agreement required distributors to promote fair competition and comply with all provisions of the contract. Under the leadership of President Donald J. Trump, the United States renegotiated the North American Free Trade Agreement and replaced it with an updated and balanced agreement that works much better for North America, the U.S.-Mexico-Canada Agreement (USMCA), which came into effect on July 1, 2020. The USMCA is a mutually beneficial benefit to workers, farmers, farmers and businesses in North America. The agreement creates more balanced and reciprocal trade that supports high-paying jobs for Americans and cultivates the North American economy. A fourth round of talks included a U.S. request for a sunset clause that would end the agreement in five years unless the three countries agreed to keep it in place, a provision that U.S. Commerce Secretary Wilbur Ross said would allow to kill countries if it didn`t work.
Canadian Prime Minister Justin Trudeau met with the House Ways and Means Committee because Congress would have to pass legislation that re-releases the treaty provisions if Trump tries to pull out of the pact.  The agreement involved thousands of U.S. workers after U.S. companies relocated their production plants to Mexico to take advantage of lower wages and relax worker health and safety rules. In addition, according to critics, the agreement has led to environmental degradation due to rapid industrialization in Mexico. After U.S. President Donald Trump took office in January 2017, he tried to replace NAFTA with a new agreement and began negotiations with Canada and Mexico.