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What Is In The New Trade Agreement

UPDATE:2021.04.16

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 USMCA is expected to have very little impact on the economy. [108] An International Monetary Fund (IMF) discussion paper published at the end of March 2019 stated that the agreement would have a “negligible” impact on the general economy. [108] [113] The IMF study predicted that the USMCA “would have a negative impact on trade in the automotive, textile and clothing sectors, while achieving modest welfare gains, mainly due to improved access to the goods market, with a negligible impact on real GDP.” [113] The IMF study found that the economic benefits of the USMCA would be significantly increased, if Trump`s trade war is over (i.e. when the U.S. lowered tariffs on steel and aluminum imports from Canada and Mexico and Canada and Mexico lowered retaliatory duties on imports from the United States) [113] May 30 , the U.S. Trade Representative, Robert E.

Lighthizer, presented to Congress a draft declaration on the administrative measures necessary to implement the NAFTA-U.S.-Mexico agreement, in accordance with the President of Commerce`s Administrative Action Act (TPA). The project will allow congress to be presented to Congress, after 30 days, on June 29, a law to implement the USMCA. In a letter [73] to Nancy Pelosi, House of Representatives spokeswoman Kevin McCarthy, the minority leader of the House of Representatives, the Republican, told Lighthizer that the USMCA was the gold standard in U.S. trade policy, modernizing the competitive trade in digital, intellectual property and services in the United States and creating a level playing field for U.S. businesses. , workers and farmers, an agreement that represents a fundamental shift in trade relations between Mexico and Mexico. In an appendix to the agreement, Mexico also pledged to pass far-reaching legislative changes to combat forced labour and violence against workers and to allow independent unions and labour tribunals. The International Trade Commission estimates that if the changes are made, they will increase the wages of unionized workers in Mexico and reduce their wage differences with American workers. Looking for more information on duty-free imports of goods under the new trade agreement? To learn more about certification requirements, click here. USMCA Certification On April 3, 2020, Canada informed the United States and Mexico that it had completed its national ratification process.

[104] Yet many officials and trade experts argue that the USMCA`s greatest strength is its “modernization chapters,” which are in part an update on how the Internet has changed trade since NAFTA began in 1994. WASHINGTON – U.S. President Trump signed the revised North American free trade agreement Wednesday, fulfilling a campaign promise to rewrite “one of the worst trade deals” in history. On June 19, 2019, the Mexican Senate ratified the agreement (114 yes, 3 no, 3 abstentions). [88] Mexico`s ratification process will be completed when the President announces its ratification to the Federal Register. Finally, rcep and the CPTPP are powerful counter-examples of the decline in rules-based trade around the world.