The CUSMA outcomes, signed on the sidelines of the G20 summit in Buenos Aires in November 2018, preserve key elements of long-term trade relations and contain new and updated provisions to address twenty-first century trade issues and promote opportunities for nearly half a billion people whom North America calls a homeland. • Support a twenty-first century economy by protecting U.S. intellectual property and ensuring opportunities for trade in services in the United States. From the beginning, NAFTA`s critics feared that the deal would result in the transfer of U.S. jobs to Mexico, despite the complementary naalc. For example, NAFTA has affected thousands of American autoworkers in this way. Many companies have relocated production to Mexico and other countries where labor costs are lower. However, NAFTA may not have been the source of these measures. President Donald Trump`s USMCA should dispel these concerns. The White House estimates that the USMCA will create 600,000 jobs and add $235 billion to the economy.

The second parallel agreement is the North American Environmental Cooperation Agreement (NAAEC), which established the Commission for Environmental Cooperation (CEC) in 1994. The CEC`s mission is to improve regional cooperation on the environment, reduce possible trade and environmental conflicts and promote the effective application of environmental legislation. It also facilitates cooperation and public participation in efforts to promote the conservation, protection and enhancement of the North American environment. It consists of three main elements: the Council (Minister of the Environment), the Joint Public Advisory Committee (JPAC) and the Secretariat, headquartered in Montreal. It has an annual budget of $9 million, with Canada, Mexico and the United States contributing $3 million per year, and is governed by a consensus (non-majority). One of the main NAFTA provisions granted to products imported from other NAFTA countries is the status of “domestic goods”. No national, provincial or local government could impose taxes or customs duties on these goods. In addition, either tariffs were eliminated at the time of the agreement or should be phased out in 5 or 10 equal steps. The only exception at exit was the specified sensitive stations, for which the end-of-life period is 15 years. A new addition to the USMCA is the inclusion of Chapter 33, which covers macroeconomic policies and exchange rate issues.

This is considered important, as it could set a precedent for future trade agreements. [54] Chapter 33 sets out monetary and macroeconomic transparency requirements that, if violated, would create a remedy under Chapter 20. [54] The United States, Canada and Mexico currently meet all of these transparency requirements, in addition to the substantive political requirements that are consistent with the articles of the International Monetary Fund Convention. [55] In addition to the provisions of the original NAFTA agreement, the USMCA draws heavily on the Trans-Pacific Partnership (TPP) trade agreements and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). . . .