What Is In The New Trade Agreement

In particular, the chapter has the strongest trade secrets protection of a previous U.S. trade agreement. It includes all the following safeguards against the misuse of trade secrets, including by state-owned enterprises: civil proceedings and remedies, criminal proceedings and sanctions, prohibitions on obstruction of the licensing of trade secrets, judicial proceedings to prevent the disclosure of trade secrets during the judicial proceedings and sanctions against government officials for unauthorized disclosure of trade secrets. 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] In accordance with Section 103 (b) (2) of the USMCA Act, the date of the interim provisions to be recommended will be at the latest after the USMCA comes into force and the implementation of the uniform rules of origin. [31] Uniform regulations at the USMCA help interpret the various chapters of the USMCA, first chapters 4-7. These rules were published a month before the trade agreement came into force and replaced NAFTA on July 1, 2020 [32] The Government of Canada noted that “the CUSMA results preserve key elements of long-term trade relations and contain new and updated provisions to address trade issues and opportunities in the 21st century.” In addition to the original NAFTA provisions, the USMCA borrows significant credits under the Trans-Pacific Partnership (TPP) trade agreements and the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP).

On April 3, 2020, Mexico announced its willingness to implement the agreement and joined Canada. [15] The agreement came into force on July 1, 2020. [16] [17] [18] [19] USMCA countries must comply with IMF standards to prevent exchange rate manipulation. The agreement requires disclosure of market interventions. The IMF may be summoned as an arbitrator if the parties argue. [57] Mexico has promised to continue implementing its new labour laws, as required by the new trade agreement. Labor reforms give Mexican workers the right to vote in independent unions and secret ballots. The Trump administration, Democrats and unions are expected to ensure that Mexico delivers on these commitments. 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.

NAFTA required automakers to produce 62.5 per cent of the vehicle`s content in North America in order to qualify for a zero tariff. With the new agreement, this threshold will be increased to 75 per cent over time. This should force automakers to buy fewer parts for a “Assembled in Mexico” car in Germany, Japan, South Korea or China. The pact also requires that 70 per cent of a vehicle`s steel and aluminum come from North America, with steel both melted and poured onto the continent. To facilitate the strengthening of cross-border trade, the United States has reached an agreement with Mexico and Canada to increase the value of de minimis delivery.

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