Now, the implementation of USMCA is likely to increase business and investor confidence. The agreement includes 34 chapters and 12 subsidiary letters and maintains most of NAFTA`s market-opening measures as well as new provisions to make trade more inclusive by facilitating the participation of entrepreneurs and small and medium-sized enterprises (SMEs). The USMCA is also making significant changes to the rules of origin for cars, dispute settlement rules, government procurement, investments, and the protection of intellectual property rights, while strengthening personnel protection and anti-corruption measures. The USMCA also provides for customs procedures management obligations to facilitate trade or transit of goods while supporting compliance with national laws and regulations. Just before opening impeachment proceedings against President Trump, the Senate passed a new trade agreement between the United States, Mexico and Canada. If the United States imposes section 232 measures, the subsidiary letter guarantees an annual exemption from those measures for 2.6 million Canadian cars and Canadian auto parts valued at $US 32.4 billion. The total content of a vehicle in North America must be 75% (compared to 62.5%). Check out our webinar for an expert`s perspective on the new trade deal. Register (June 23, 2020 edition) Trump and other U.S.
officials have long called NAFTA dead and said the USMCA was a comprehensive review of the agreement. Despite Trump`s statement, the 2,082-page USMCA still retains much of the original deal and is more of an update than a full revision. But there are some important differences. Regardless of this, negotiators agreed to update labour and environmental standards that were not essential for the 1994 agreement and are now typical of modern trade agreements. For example, the application of a minimum wage for autoworkers, stricter environmental standards for Mexican trucks and new fishing rules for the protection of marine life. The heads of state and government of the United States, Mexico and Canada have formally signed a trade agreement to replace NAFTA, but the new agreement has a long way to go, as lawmakers in all three countries have yet to pass it before it comes into force. It took more than a year of negotiations to reach this point. President Trump on Wednesday signed the revised North American Free Trade Agreement, honoring an election promise to rewrite “one of the worst trade deals” in history. But it won`t bring back hundreds of thousands of jobs, as the president said.
Nothing is clearer than the fact that many U.S. automakers have announced that they will relocate production to Mexico since the deal. As of 2020, to qualify as zero duties at the border crossing, a car or truck will have to have 75% of its components manufactured in Canada, the United States or Mexico, compared to 62.5% currently. If we take a step back, it`s worth mentioning that we`re in a week where President Trump just signed this first phase of a trade deal with China. You have this new North American trade agreement, the USMCA, moving forward. Passing the new trade deal, known as the U.S.-Mexico-Canada deal, would be a huge asset both for Trump — because it`s one of his election promises — and for Democrats who want to show they legislate, even as they prepare for the president`s impeachment. I think the right kind of trade deal, which takes into account the climate crisis, takes into account income inequality, would distribute production more widely around the world. .