/United States Canada Mexico Agreement

United States Canada Mexico Agreement

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] 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 U.S. real GDP by 0.35 percent and total U.S. employment by 0.12% (176,000 jobs). [114] [115] The analysis cited by another Congressional Research Service study showed that the agreement would not have a measurable effect on employment, wages or overall economic growth. [114] In the summer of 2019, Larry Kudlow, Trump`s chief economic adviser (the director of the National Economic Council at Trump White House), made unfounded statements about the likely economic impact of the agreement and overstated forecasts related to jobs and GDP growth. [114] Negotiations focused “primarily on car exports, steel and aluminum tariffs, as well as the milk, egg and poultry markets.” A provision “prevents any party from enacting laws that restrict the cross-border flow of data.” [11] Compared to NAFTA, the USMCA increases environmental and labour standards and encourages domestic production of cars and trucks. [12] The agreement also provides up-to-date intellectual property protection, gives the U.S. more access to the Canadian milk market, imposes a quota for Canadian and Mexican auto production, and increases the customs limit for Canadians who purchase U.S. products online from $20 to $150.

[13] The full list of differences between USMCA and ALEFTA is listed on the Website of the United States Trade Representative (USTR). [14] This agreement is the result of a renegotiation between the member states of the North American Free Trade Agreement between 2017 and 2018, which formally approved the terms of the new agreement on 30 September 2018 and 1 October. [10] The USMCA was proposed by U.S. President Donald Trump and signed on November 30, 2018 by Trump, Mexican President Enrique Pea Nieto and Canadian Prime Minister Justin Trudeau as a secondary event of the 2018 G20 summit in Buenos Aires.

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