Us Mexico Canada Agreement Summary

On December 10, 2019, the three countries reached a revised USMCA agreement. On January 29, 2020, Deputy Prime Minister and Minister of Intergovernmental Affairs Chrystia Freeland introduced the USMCA C-4 Transposition Act in the House of Commons[93] and passed the first reading without a registered vote. On February 6, the bill passed second reading in the House of Commons by 275 votes to 28, with the Bloc Québécois voting against and all other parties voting in its favour, and it was referred to the Standing Committee on International Trade. [99] [100] [101] On 27 February 2020, the committee voted to send the bill to Parliament for third reading, without amendments. For the first time in a U.S. trade agreement, the agreement prohibits local data storage requirements in circumstances where a financial supervisory authority has access to the data it needs to fulfill its regulatory and supervisory mandate. The agreed text of the agreement was signed by the heads of state and government of the three countries on November 30, 2018, as an incidental event at the 2018 G20 summit in Buenos Aires, Argentina. [34] The English, Spanish and French versions will also be binding and the agreement will take effect after ratification by the three states through the adoption of enabling laws. [35] NAFTA has three primary dispute resolution mechanisms. Chapter 20 is the settlement mechanism for countries. It is often considered the least controversial of the three mechanisms, and has been maintained in its original form from NAFTA to the USMCA. In such cases, complaints filed by USMCA Member States against the duration of the contract would be violated.

[48] In Chapter 19, the justifications for anti-dumping or countervailing duties are managed. Without Chapter 19, the avenue of recourse for the management of these policies would be through the national legal system. Chapter 19 provides that an USMCA body hears the case and acts as an international commercial tribunal to arbitrate the dispute. [48] The Trump administration has attempted to remove Chapter 19 of the new USMCA text, which until now existed in the agreement. One of President Trump`s main goals in the renegotiation is to ensure that the agreement benefits American workers. The United States, Mexico and Canada have approved a laboratory chapter that brings work obligations to the heart of the agreement, makes them fully applicable and is the strongest provisions of any trade agreement. On March 1, 2019, many organizations representing the agricultural sector in the United States announced their support for the USMCA and asked Congress to ratify the agreement. They also called on the Trump administration to continue to support NAFTA until the new trade agreement is ratified. [70] On March 4, House Ways and Means President Richard Neal predicted a “very hard” path through Congress for the agreement. [71] Starting March 7, senior White House officials met with members of the Ways and Means House of Representatives, as well as moderate cackles from both parties, such as the Solver Caucus, the Tuesday Group and the Blue Dog Coalition, to seek ratification support.

The Trump administration also withdrew from the threat to withdraw from NAFTA as negotiations with Congress continued. [72] On May 30, U.S. Trade Representative Robert E. Lighthizer presented Congress with a draft statement on the administrative steps needed to implement the U.S.-Mexico-Mexico-new NAFTA agreement, in accordance with the President`s 2015 Administrative Action Statement. The project will allow congress to be presented to Congress, after 30 days, on June 29, a law to implement the USMCA. In a letter[73] to House of Representatives critic Nancy Pelosi and Minority House Republican Leader Kevin McCarthy, Lighthizer said the USMCA is the gold standard in the United States.