United States Canada Mexico Agreement

In 1994, the United States, Mexico and Canada created the world`s largest free trade region with NAFTA, generating economic growth and helping to improve the standard of living of people in all three member countries. By strengthening trade and investment rules and procedures, this agreement has proven to be a solid foundation for building Canada`s prosperity and has set a valuable example of the benefits of trade liberalization for the rest of the world. The new agreement between Canada, the United States and Mexico will serve to strengthen Canada`s strong economic ties with the United States and Mexico. 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 the Trump trade war ended (i.e., if the U.S. removed tariffs on steel and aluminum imports from Canada and Mexico and if Canada and Mexico dropped retaliatory duties on imports from the U.S.). [113] An April 2019 International Trade Commission analysis of the likely effects of the USMCA estimated that the agreement, if fully implemented (six years after ratification), would increase the United States. Real GDP by 0.35% and would increase total employment in the United States by 0.12% (176,000 jobs). [114] [115] The analysis cited in another Congressional Research Service study showed that the agreement would not have a measurable impact on employment, wages, or overall economic growth. [114] In the summer of 2019, Larry Kudlow (the director of the National Economic Council of the Trump White House) made unfounded allegations about the likely economic impact of the deal and exaggerated forecasts in terms of jobs and GDP growth. [114] The USMCA establishes the highest level of any U.S. trade agreement for strong and effective protection and enforcement of intellectual property rights.

This is an important upgrade to NAFTA. However, substantial changes were made to the Intellectual Property Chapter, Chapter 20, in December 2019, following negotiations on the revision of the USMCA text, which had been signed in November 2018. 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 June 1, 2020, the USTR office issued the Uniform Rules,[30] the last hurdle before the agreement was implemented on July 1, 2020. In the Chapter “Sanitary and Phytosanitary Measures” (SPS), the United States, Mexico and Canada agreed to strengthen disciplines on science-based spS measures, while ensuring that the Parties respect their sovereign right to the protection of human, animal and plant life or health. . . .