T Mec Agreement
- Posted on October 10, 2021
- in Uncategorized
- by admin
The agreement between the United States, Mexico and Canada (“USMCA” in the United States, “CUSMA” in Canada and “T-MEC” in Mexico) entered into force on July 1, 2020. The trade agreement between the three countries replaces the North American Free Trade Agreement (NAFTA). During the 2016 US presidential election, Donald Trump`s campaign included a promise to renegotiate or cancel NAFTA if the renegotiations failed.  After his election, Trump made a number of changes that affect 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 that he was serious in seeking changes to NAFTA.  Much of the debate about the virtues and mistakes of the USMCA is similar to the debate about all free trade agreements (SAAs), for example the nature of free trade agreements as public goods, potential violations of national sovereignty, and the role of commercial, labor, environmental, and consumer interests in shaping the language of trade agreements. The Trump administration`s Office of the U.S. Trade Representative has proposed the USMCA, citing new digital trade measures, stronger trade secret protections and adaptations to rules of origin for motor vehicles as some of the benefits of the trade deal.  First, it is important to understand which part of the economies affected by this new agreement.
The agreement covers several sectors of the economy, including agricultural products, industrial goods, employment conditions, digital trade and others. Among the main features of the agreement are: the agreement between the United States, Mexico and Canada (USMCA) is a trade agreement between these parties. The USMCA replaced the North American Free Trade Agreement (NAFTA). Take advantage of the revised trade agreement between three global superpowers. Expansion to Mexico is now an increasingly profitable business, with strong international business relationships and partners, a booming economy, and relatively favorable labor costs. In addition to the provisions of the original NAFTA, the USMCA draws heavily on the Trans-Pacific Partnership (TPP) and Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) trade agreements. On April 3, 2020, Mexico announced its readiness to implement the agreement and join Canada.  The agreement entered into force on 1 July 2020.     Negotiations “largely focused on car exports, steel and aluminum tariffs, and the milk, egg and poultry markets.” One provision “prevents any party from legislating that restricts the cross-border flow of data.”  Compared to NAFTA, the USMCA raises environmental and labor standards and encourages increased domestic production of cars and trucks.  The agreement also provides updated intellectual property protection, allows the U.S. greater access to the Canadian dairy market, imposes a quota for Canadian and Mexican auto production, and increases duty-free for Canadians buying from the U.S. .