Us And Mexico Reach New Agreement On Trade

The Trump administration`s office proposed the USMCA citing new measures for digital commerce, strengthening the protection of trade secrets and adapting the rules of origin of automobiles among the benefits of the trade agreement. [112] The agreement is described differently by each signatory – in the United States, it is called the U.S.-Mexico-Canada Agreement (USMCA); [1] [23] in Canada, it is officially known as the Canada-U.S.-Mexico Agreement (CUSMA) in English[24] and the Canada-U.S.-Mexico Agreement (ACEUM) in French; [25] and in Mexico, tratado is called tratado between México, Estados Unidos y Canadé (T-MEC). [26] [27] The agreement is sometimes referred to as „New NAFTA“[28][29] with respect to the previous trilateral agreement for the successor, the North American Free Trade Agreement (NAFTA). An April 2019 Analysis by the International Trade Commission on the likely effects of the USMCA estimated that the agreement would increase U.S. real GDP by 0.35 percent if the agreement were fully implemented (six years after ratification) and would increase 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] In order to facilitate the increase in cross-border trade, the United States has reached an agreement for Mexico to increase the de minimis shipping value from $50 to $100.

Transit values up to this level would arrive in Mexico without tariffs or taxes and with minimum formal entry procedures, allowing more businesses, particularly small and medium-sized enterprises, to be part of cross-border trade. The United States and Mexico have reached agreement on a modernized, highly standardized chapter on intellectual property (IP), which provides effective and robust protection and application of intellectual property rights, which are essential to promoting innovation, stimulating economic growth and supporting American jobs. The negotiations focused „primarily on car exports, tariffs on steel and aluminum, as well as the milk, egg and poultry markets.“ A provision „prevents any party from enacting laws that restrict the cross-border flow of data.“ [11] Compared to NAFTA, the USMCA increases environmental and labour standards and encourages domestic production of cars and trucks. [12] The agreement also provides up-to-date intellectual property protection, gives the U.S. more access to the Canadian milk market, imposes a quota for Canadian and Mexican auto production, and increases the customs limit for Canadians who purchase U.S. products online from $20 to $150. [13] The full list of differences between USMCA and ALEFTA is listed on the Website of the United States Trade Representative (USTR). [14] The United States and Mexico have agreed on the most advanced, comprehensive and highest environmental chapter of a trade agreement. Like the work chapter, the environmental chapter puts all environmental provisions at the heart of the agreement and makes them applicable.