Usmca Agreement Summary

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] For the first time, a trade agreement will require that: on June 1, 2020, the USTR Office issued the uniform rules,[30] the last hurdle before the implementation of the agreement on July 1, 2020. 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] In an appendix to the agreement, Mexico also committed to enact far-reaching legislative changes to combat forced labour and violence against workers and to allow independent unions and labour tribunals. The International Trade Commission estimates that if the changes are made, they will increase the wages of unionized workers in Mexico and reduce their wage differences with American workers. 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] [19] [19] On May 11, 2018, House Of Representatives spokesman Paul Ryan set May 17 as the deadline for congressional action.

This deadline was not met and the agreement with Mexico was not reached until August 27, 2018. [33] At that time, Canada had not approved the agreement. Mexico`s outgoing President Enrique Pea Nieto, having left office on 1 December 2018 and requiring 60 days as a review period, the deadline for making the agreed text available was set at the end of September 2018, 30 September 2018. Negotiators worked around the clock and reached an agreement less than an hour before midnight on a draft text. The next day, October 1, 2018, the USMCA text was published as an agreed document. The renegotiated agreement contains a chapter on macroeconomic policies and exchange rate issues, with new political and transparent monetary commitments. The chapter will address unfair monetary practices by requiring high-level commitments to avoid any devaluation of competition and to target exchange rates, while significantly increasing transparency and providing accountability mechanisms.