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On April 3, 2020, Canada informed the United States and Mexico that it had completed its national process of ratifying the agreement. [104] According to the Office of the U.S. Trade Representative, the USMCA is a “mutual benefit to Workers, Farmers, Farmers and Businesses in North America.” Nafta was aiming for the creation of a free trade area between the United States, Canada and Mexico, and the USMCA is using NAFTA as the basis for a new agreement. While the USMCA has a broad impact on trade of all kinds between the three designated nations, some of the most important provisions of the agreement include the following provisions: In addition, there is a provision that the agreement must be reviewed by the three nations themselves every six years, with a 16-year forfeiture clause. The contract may be renewed for a period of 16 years during the six-year review period. [51] The introduction of the Sunset clause gives more control in the organization of the future of the USMCA in the hands of national governments. However, there is concern that this could lead to greater uncertainty. Sectors such as automotive require significant investment in cross-border supply chains. [52] Given the dominant position of the U.S. consumer market, it is likely that this will put pressure on companies to establish more production in the United States, with a higher probability of higher production costs for these vehicles. [53] The new chapter of digital commerce contains the strongest digital trade disciplines of an international agreement and provides a solid foundation for expanding trade and investment in innovative products and services for which the United States enjoys a competitive advantage. USMCA countries must comply with IMF standards to avoid exchange rate manipulation. The agreement requires disclosure of market interventions.

The IMF may be summoned as an arbitrator if the parties argue. [57] The United States, Mexico and Canada have reached agreement on a modernized and highly standardized chapter on intellectual property (IP) that provides effective and robust protection and enforcement of intellectual property rights, which are essential to promoting innovation, stimulating economic growth and supporting American jobs. On December 19, 2019, the U.S. House of Representatives passed the USMCA with multiparty support with 385 votes (Democracy 193, Republican 192) to 41 (Democracy 38, Republican 2, Independent 1). [79] On January 16, 2020, the U.S. Senate passed the trade agreement by 89 votes (Democrats 38, Republicans 51) to 10 (Democracy 8, Republican 1, Independent 1)[80] and the bill was forwarded to the White House for the signature of Donald Trump. [81] On January 29, 2020, Trump signed the agreement (Public Law No: 116-113). [82] NAFTA has been formally amended,[83] but not the 1989 Canada-U.S. Free Trade Agreement, which is only “suspended.” [84] [85] An April 2019 International Trade Commission analysis of 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] The U.S.-Mexico-Mexico-Canada Agreement (USMCA) is a trade agreement between these parties. The USMCA replaced the North American Free Trade Agreement (NAFTA).

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