A trade agreement with Mexico and Canada revises Mexico`s labour laws and further encourages auto production in North America. 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. “Today, we are finally ending the NAFTA nightmare,” Trump said at a signing ceremony at the White House, calling the new trade deal a “colossal victory” for farmers, factory workers and other countries. On December 12, 2019, the Mexican Senate adopted the revised treaty by 107 votes to 1. [89] On April 3, 2020, Mexico announced its readiness to implement the agreement and joined Canada,[15] although it requested that its auto industry have additional time to comply with the agreement. [90] The agreement extends other intellectual property rights, such as. B that the extension of 50 years of copyright protection in NAFTA to 70 years. It also includes new criminal penalties for the theft of trade secrets, including cyber theft. The uniform rules contain additional details on the rules of origin and origin of the agreement. UNITED STATES Canada Mexico The question is not whether North American trade is changing. It`s about whether you`re able to thrive in this new environment.

The USMCA will have an impact on the way Member States negotiate future free trade agreements. Section 32.10 requires USMCA countries to notify USMCA members three months in advance if they plan to enter into free trade negotiations with non-market economies. Article 32.10 authorizes USMCA countries to review new free trade agreements. It is generally speculated that Article 32.10 targets China. [56] In fact, a senior White House official said of the USMCA agreement: “We were very concerned about China`s efforts to undermine the U.S. position by reaching agreements with others.” [57] The chapter states that the rules are “science-based.” In other words, the rules cannot be imposed for ethical or social reasons. The focus is on the regulator to prove that a regulation is supported by the scientific community, not on the company, to prove that its product does not hurt. This last point, called the precautionary principle, is excluded by this approach. The agreement between the United States of America, the United States of Mexico and Canada[1], commonly known as the United States-Mexico-Canada Agreement (USMCA), is a free trade agreement between Canada, Mexico and the United States in lieu of the North American Free Trade Agreement (NAFTA). [2] [3] [4] The agreement has been referred to as NAFTA 2.0[5][7][7] or “New ALEFTA[8][9],[9] since many nafta provisions have been introduced and its amendments have been found to be largely incremental.

On 1 July 2020, the USMCA came into force in all Member States. National procedures for ratifying the agreement in the United States are governed by the legislation of the Trade Promotion Authority, which is also known as the fast-track authority. But the United States.M.C.A. retain a more controversial addition to the Trump administration – a sunset clause that requires all three countries to verify they remain in the agreement after six years. If a country decides not to pursue the pact, the U.S.M.C.A. expires 16 years later. Under the new agreement, U.S. farmers will have better access to the supply-run Canadian milk market. In particular, Canada increased market access to 3.59 per cent, and the federal government agreed to get rid of so-called Class 7 prices for certain dairy products. Pricing allows domestic milk processors to purchase Canadian milk at lower prices.