|| Author: Duncan Riley|

Us-Mexico-Canada (Usmca) Agreement

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. They also called on the Trump administration to continue to support NAFTA until the new trade agreement is ratified. [70] On March 4, House Ways and Means President Richard Neal predicted a “very hard” path through Congress for the agreement. [71] Starting March 7, senior White House officials met with members of the Ways and Means House of Representatives, as well as moderate cackles from both parties, such as the Solver Caucus, the Tuesday Group and the Blue Dog Coalition, to seek ratification support. The Trump administration also withdrew from the threat to withdraw from NAFTA as negotiations with Congress continued. [72] On June 1, 2020, USTR Robert Lighthizer released the uniform rules, which are the final hurdle before the agreement is 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 provisions of the Convention cover a wide range of agricultural products, homelessness, industrial products, working conditions, digital trade, among others. 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] The new chapter of digital commerce contains the strongest digital trade disciplines of an international agreement and provides a solid basis for expanding trade and investment in innovative products and services in which the United States enjoys a competitive advantage. On June 1, 2020, the USTR Office issued the uniform rules[30] which are the last hurdle before the implementation of the agreement on July 1, 2020.

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] The United States, Mexico and Canada have reached an agreement to modernize NAFTA, which is 25 years old, into a high-level agreement of the 21st century. The new agreement between the United States and Mexico-Canada (USMCA) will support mutually beneficial trade, which will lead to freer markets, fairer trade and robust economic growth in North America. Canada ratified the agreement in March and the USMCA came into force on July 1, 2020.

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