The agreement is designated differently by each signatory – in the United States, it is called the U.S.-Mexico-Canada Agreement (USMCA); [1] [23] in Canada, it is officially known as the Canada-U.S.-Mexico Agreement (CUSMA) in English[24] and the Canada-U.S.-Mexico Agreement (ACEUM) in French; [25] and in Mexico, tratado is called tratado between México, Estados Unidos y Canadé (T-MEC). [26] [27] The agreement is sometimes referred to as “New NAFTA”[28][29] with respect to the previous trilateral agreement for the successor, the North American Free Trade Agreement (NAFTA). On December 9, 2019, Fox News reported that negotiators from the three countries reached an agreement on implementation, paving the way for a final agreement within 24 hours and ratification by all three parties before the end of the year. Mexico has agreed to impose a minimum wage of $16 per hour for Mexican auto workers by a “neutral” third party. Mexico, which imports all of its aluminum, also objected to the provisions relating to the U.S. steel and aluminum content of automotive components. [37] 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. On June 1, 2020, USTR Robert Lighthizer`s office 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 A new addition to the USMCA is the inclusion of Chapter 33, which deals with 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] An April 2019 Analysis by the International Trade Commission on the likely effects of the USMCA estimated that if the agreement were fully implemented (six years after ratification), the agreement would increase the United States.

Be Sociable, Share!