What Is the United States-Mexico-Canada Agreement Implementation Act

Title VII of H.R.5430 establishes an inter-institutional working committee for monitoring and enforcement to monitor the implementation of the working parts of the agreement. The implementation project includes specific instructions to the Committee, including an annually updated list of priority sub-sectors, a semi-annual assessment of Mexico`s compliance with its obligations, recommendations for enforcement action if necessary, and an online hotline to receive advice on labour issues in Mexico and Canada from interested parties. The bill also establishes procedures for rapid working groups. U.S. Trade Representative Robert Lighthizer has been negotiating at length with task forces chosen by House Speaker Pelosi to amend the agreement to ensure the USMCA passes Congress with broad bipartisan support. The United States, Mexico and Canada have implemented these amendments through a protocol amending the USMCA signed on December 10, 2019. In addition, there is a provision that the agreement itself must be reviewed by the three countries every six years, with a 16-year expiration clause. The agreement may be extended for a further 16 years during the semi-annual examinations. [51] The introduction of the sunset clause gives more control over the future of the USMCA in the hands of national governments. However, there is concern that this could lead to greater uncertainty.

Industries such as automotive require significant investments in cross-border supply chains. [52] Given the dominant position of the U.S. consumer market, this may put pressure on companies to locate more production in the U.S., which will result in a greater likelihood of increased production costs for these vehicles. [53] This bill provides for the legal authority of the United States-Mexico-Canada Trade Agreement (USMCA), which replaces the North American Free Trade Agreement. Specifically, the bill implements provisions that include monitoring and enforcing working and environmental conditions, de minimis values for U.S. exports, and cooperation among treaty members to prevent customs evasion. Growing objections within member states to U.S. trade policy and various aspects of the USMCA have impacted the signature and ratification process. Mexico said it would not sign the USMCA if tariffs on steel and aluminum remained in place.

[62] There has been speculation following the results of the US summit on November 6, 2018. The USMCA is expected to have very little impact on the economy. [108] An International Monetary Fund (IMF) working paper released at the end of March 2019 stated that the agreement would have a “negligible” impact on the economy as a whole. [108] [113] The IMF study predicted that the USMCA would “affect trade in the automotive, textile, and apparel industries while generating modest overall gains in wealth, primarily through better access to the commodity market with negligible effect on real GDP.” [113] The IMF study found that the economic benefits of the USMCA would be greatly enhanced if Trump`s trade war ended (i.e., if the U.S. abolished tariffs on steel and aluminum imports from Canada and Mexico, and Canada and Mexico dropped retaliatory tariffs on imports from the United States). [113] The North American Free Trade Agreement (NAFTA), signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas and U.S. President George H.W. Bush, entered into force on January 1, 1994. NAFTA has created economic growth and raised the standard of living of the people of the three member countries. By strengthening trade and investment rules and procedures across the continent, NAFTA has proven to be a solid foundation for building Canadian prosperity. NAFTA replaced Canada-U.S. Free Trade Agreement (CUFTA).

Negotiations on the APCR began in 1986 and the agreement was signed on 1 August 1986. January 1989. The two countries have agreed on a historic agreement that puts Canada and the United States at the forefront of trade liberalization. More information can be found on the Canada-U.S. Free Trade Agreement information page. On December 12, 2019, the Mexican Senate adopted the revised treaty by 107 votes to 1. [89] On April 3, 2020, Mexico announced that it was ready to implement the agreement and accede to Canada,[15] although it had asked to give its automotive industry more time to comply with the agreement. [90] The agreement is the result of a renegotiation between North American Free Trade Agreement member states in 2017-2018, which informally accepted the terms of the new agreement on September 30, 2018 and officially on October 1. [10] The USMCA was proposed by US President Donald Trump and was proposed on September 30. It was signed in November 2018 by Trump, Mexican President Enrique Peña Nieto and Canadian Prime Minister Justin Trudeau at a side event at the 2018 G20 summit in Buenos Aires. A revised version was signed on December 10, 2019 and ratified by all three countries, with final ratification (Canada) taking place on March 13, 2020, just prior to the adjournment of the Canadian Parliament due to the COVID-19 pandemic. On April 3, 2020, Canada notified the United States and Mexico that it had completed its domestic ratification process for the agreement.

[104] As expected, the USMCA was signed by all three sides at the G20 summit in Buenos Aires on November 30, 2018. [58] [59] Disputes over labour rights, steel and aluminum prevented the ratification of this version of the agreement. [60] [61] Canadian Deputy Prime Minister Chrystia Freeland, U.S. Trade Representative Robert Lightizer, and Mexican Secretary of State for North America Jesus Seade officially signed a revised agreement on December 10, 2019, which was ratified by all three countries on March 13, 2020. USMCA countries must adhere to IMF standards to prevent exchange rate manipulation. The agreement provides for the disclosure of market interventions. The IMF may be subpoenaed to act as an arbitrator when the parties object. [57] In the 2016 U.S. presidential election, Donald Trump`s campaign contained a promise to renegotiate NAFTA or cancel it if renegotiations failed. [21] After the election, Trump made a number of changes that affected trade relations with other countries. The withdrawal from the Paris Agreement, the cessation of participation in the Trans-Pacific Partnership negotiations and the significant increase in tariffs with China were some of the measures he implemented and reaffirmed his serious commitment to amending NAFTA.

[22] Much of the debate about the merits and shortcomings of the USMCA is similar to that surrounding all free trade agreements (FTAs), such as the nature of free trade agreements as public goods, potential violations of national sovereignty, and the role of business, labour, environmental and consumer interests in shaping the language of trade agreements. .

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