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. After Donald Trump`s presidential election, a number of trade experts said that exiting NAFTA, as Proposed by Trump, would have a number of unintended consequences for the United States, including limited access to the largest U.S. export markets, reduced economic growth and higher prices for gasoline, cars, fruits and vegetables.  The textile, agriculture and automotive sectors would be most affected.   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. Through NAFTA, the three signatories agreed to remove barriers to trade between them. By removing tariffs, NAFTA has increased investment opportunities.
Many critics of NAFTA saw the agreement as a radical experiment developed by influential multinationals who wanted to increase their profits at the expense of ordinary citizens of the countries concerned. Opposition groups argued that the horizontal rules imposed by nafta could undermine local governments by preventing them from enacting laws or regulations to protect the public interest. Critics also argued that the treaty would lead to a significant deterioration in environmental and health standards, promote privatization and deregulation of essential public services, and supplant family farmers in the signatory countries. Such trade benefits often come under interest, because while costs are highly concentrated in certain sectors such as the automotive industry, the benefits of an agreement such as NAFTA are widespread in society. PROPONENTs of NAFTA estimate that about 14 million U.S. jobs depend on trade with Canada or Mexico, and that the nearly two hundred thousand export-related jobs created each year by the pact cost an average of 15-20% more than lost jobs. NAFTA covers services other than air, marine and basic telecommunications.