U.s.-Mexico-Canada Trade Agreement

A new addition to the USMCA is the inclusion of Chapter 33, which covers macroeconomic policies and exchange rate issues. This is considered important because it could set a precedent for future trade agreements. [54] Chapter 33 sets out requirements for currency and macroeconomic transparency that, in the event of a breach, would be grounds for litigation under Chapter 20. [54] The United States, Canada and Mexico currently meet all of these transparency requirements in addition to substantive policy requirements that comply with the international Monetary Fund`s articles. [55] Under the Pharmaceutical Annex, the FDA will assess Mexico`s and Canada`s ability to protect secret trade information. If, after these assessments are completed, the FDA confirms that Mexico and Canada are in a position to protect confidential information, the Pharmaceutical Annex requires the contracting parties to establish mechanisms for the exchange of confidential information on drug inspections between them. This is an improvement over NAFTA and will improve public health. The provisions of the Convention cover a wide range of agricultural products, homelessness, industrial products, working conditions and digital commerce. Among the most important aspects of the agreement are improving U.S. dairy farmers` access to the Canadian market, guidelines for a greater proportion of automobiles produced in the three countries and not imported from other countries, and maintaining the dispute settlement system, which is similar to that contained in NAFTA.

[35] [38] Negotiations focused « primarily on car exports, steel and aluminum tariffs, as well as the milk, egg and poultry markets. » A provision « prevents any party from enacting laws that restrict the cross-border flow of data. » [11] Compared to NAFTA, the USMCA increases environmental and labour standards and encourages domestic production of cars and trucks. [12] The agreement also provides up-to-date intellectual property protection, gives the U.S. more access to the Canadian milk market, imposes a quota for Canadian and Mexican auto production, and increases the customs limit for Canadians who purchase U.S. products online from $20 to $150. [13] The full list of differences between USMCA and ALEFTA is listed on the Website of the United States Trade Representative (USTR). [14] During the 2016 presidential campaign, Donald Trump promised to renegotiate NAFTA, which he called « the worst trade deal ever. » As president, he did. The result is the USMCA, which signed Trump in January and was part of his achievements in his State of the Union address. The USMCA is updating and replacing the 25-year-old North American Free Trade Agreement (NAFTA). Work on the new agreement took several years, had to be approved by both houses of Congress and required all three countries to certify that they were complying with the various measures of the agreement.