What Is The New Nafta Agreement

The abolition of ISDS mechanisms and the energy overs sufficiency of the agreement are important benefits for the environment. The problem is not in the new UMWELTs chapter of NAFTA, particularly the fact that climate change is not mentioned at all. Pollution is not mentioned much either. And the Paris agreement on climate change is certainly not mentioned. Although the agreement is more applicable, it does not address the most dangerous issues of our time. On December 19, 2019, the U.S. House of Representatives passed the USMCA with multiparty support with 385 votes (Democracy 193, Republican 192) to 41 (Democracy 38, Republican 2, Independent 1). [79] On January 16, 2020, the U.S. Senate passed the trade agreement by 89 votes (Democrats 38, Republicans 51) to 10 (Democracy 8, Republican 1, Independent 1)[80] and the bill was forwarded to the White House for the signature of Donald Trump. [81] On January 29, 2020, Trump signed the agreement (Public Law No: 116-113).

[82] NAFTA has been formally amended,[83] but not the 1989 Canada-U.S. Free Trade Agreement, which is only “suspended.” [84] [85] Under the new agreement, U.S. farmers will have better access to the Canadian supply-managed milk market. In particular, Canada increased market access to 3.59 per cent, and the federal government agreed to get rid of so-called Class 7 prices for certain dairy products. Pricing allows domestic milk processors to purchase Canadian milk at lower prices. A trade agreement with Mexico and Canada revises Mexico`s labour laws and further encourages auto production in North America. Forward? Hopes for Canada`s Next Trade Agreement On June 1, 2020, the USTR Office issued the uniform rules,[30] which are the final hurdle before the agreement is implemented on July 1, 2020. In an appendix to the agreement, Mexico also pledged to pass 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.

The Trump administration`s other “innovation” was to include a provision that “suspends” the agreement in 16 years unless all three parties agree to a lawsuit. After six years, Canada, Mexico and the United States will re-evaluate the agreement and make changes on request. While trade agreements needed to be updated, NAFTA already offered a mechanism to do so – NAFTA Section 2001 (transferred to USMCA) gives the Free Trade Commission (composed of the three trade ministers) the opportunity to review the agreement.