United States-Canada-Mexico Agreement

The North American Free Trade Agreement (NAFTA), signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas and U.S. President George H.W. Bush, entered into force on January 1, 1994. NAFTA has created economic growth and a rising standard of living for the citizens of the three member states. By strengthening trade and investment rules and procedures across the continent, NAFTA has proven to be a solid foundation for building Canada`s prosperity. NAFTA replaced Canada-U.S. Free Trade Agreement (CUFTA). Negotiations on CUFTA began in 1986 and the agreement entered into force on 1 January 1989. The two nations agreed on a historic agreement that put Canada and the United States at the forefront of trade liberalization. For more information, visit the Canada-U.S. Free Trade Agreement information page.

The U.S. Mexico-Canada Agreement (USMCA) is a trade agreement between these parties. The USMCA replaced the North American Free Trade Agreement (NAFTA). The USMCA is expected to have very little impact on the economy. [108] An International Monetary Fund (IMF) working paper released in late March 2019 established that the agreement would have a “negligible” impact on the economy as a whole. [108] [113] According to the IMF study, the USMCA “would affect trade in the automotive, textile, and apparel sectors, while generating modest overall gains in welfare, fueled primarily by improved market access for goods with negligible effects on real GDP.” [113] The IMF study found that the economic benefits of the USMCA would be significantly increased if there were the end of Trump`s trade war (i.e.: if the U.S. abolishes tariffs on steel and aluminum imports from Canada and Mexico, and Canada and Mexico have dropped retaliatory duties on imports from the U.S.). [113] On June 1, 2020, the ustr Robert Lighthizer office released the Uniform Rules, the last hurdle before the agreement was implemented on July 1, 2020. The text of the agreement is available here: ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/uniform-regulations The United States, Mexico and Canada have reached an agreement that benefits American farmers, ranchers and agricultural businesses.

While NAFTA agriculture has generally developed well, significant improvements to the agreement will ensure fairer trade in food and agriculture and increase exports of U.S. agricultural products. Sectoral chapters, including Chapter 12, relating to FDA-regulated products were not included in most previous trade agreements, including NAFTA. Therefore, the inclusion of these annexes by the USMCA is an innovation not only in U.S. trade policy, but also for international public health. On April 3, 2020, Canada informed the United States and Mexico that it had completed its domestic ratification process for the agreement. [104] National procedures for ratifying the agreement in the United States are governed by the legislation of the Trade Promotion Authority, also known as the Fast Track Authority. In addition, there is a provision stating that the agreement itself must be reviewed every six years by the three nations, with a sunset clause of 16 years. The agreement can be extended by 16 years during the six years of revision. [51] The introduction of the sunset clause puts more control in the organization of the future of the USMCA in the hands of national governments.

However, there is concern that this could lead to greater uncertainty. Sectors such as automotive manufacturing require significant investments in cross-border supply chains. [52] Given the predominance of the consumer market in the United States, it is likely that this will put pressure on companies to install more production in the United States, with a greater likelihood of increasing the costs of producing these vehicles. [53] On March 1, 2019, many organizations representing the agricultural sector in the United States announced their support for the USMCA and asked Congress to ratify the agreement. . . .

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