Successor Agreement To Nafta

But for millions of Mexican workers, the signing of the USMCA agreement will have been treated with shrugging their shoulders. The Mexican press has argued that the USMCA is essentially Nafta, who is dressed in another language, and many are either indifferent or unsure of what exactly the new deal will mean to them. They will have to see, when it comes into force next year, whether it will have a significant impact on their jobs, either for better or for worse. Here are some of the key provisions of the U.S.-Mexico-Canada Trade Agreement (USMCA): The U.S., Mexico, and Canada have reached an agreement on a modernized, high-quality intellectual property (IP) chapter, which provides strong and effective protection and enforcement of IP rights that encourage innovation, economic growth, and support for U.S. jobs. On Tuesday, Democrats said they had reached an agreement with the White House on new provisions and planned to back the deal in a vote. 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. [112] In order for vehicles to qualify for duty-free treatment under the USMCA, they must normally be 75% auto parts from the United States, Canada and Mexico.

The new agreement also requires that 40% to 45% of auto parts be made by workers who earn at least $16 an hour. This provision provides an incentive for automakers to produce more goods in the U.S., as labor costs are higher than in Mexico. The new chapter on digital trade contains the strongest disciplines on digital trade of any international agreement and provides a solid foundation for expanding trade and investment in innovative products and services, for which the United States has a competitive advantage. The North American Free Trade Agreement (NAFTA), signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas and U.S. President George H.W. Bush, entered into force on January 1, 1994. NAFTA has created economic growth and a rising standard of living for the people of the three member states. .