What Changed In The New Nafta Agreement

The agreement gives U.S. farmers additional access to foreign markets, particularly in Canada. It does not dismantle Canada`s “supply management system,” which imposes the amount of production on Canadian farmers so that they can be profitable. But Canada has agreed to abolish a program that helps sellers of certain dairy products in Switzerland and abroad and opens its market to milk, cream, butter, cheese and other U.S. products. In return, the United States expanded access to its market for the Canadian dairy and sugar industry. The terms of the USMCA remain in effect for a period of 16 years during which the parties may decide to review and/or renegotiate the terms or withdraw from the agreement. However, after six years, the duration of the sinking of the USMCA (16 years) may be revised and possibly extended if the parties believe that this would be beneficial. The new agreement provides for greater protection of patents and trademarks in areas such as biotechnology, financial services and domain names, all of which have made significant progress over the past quarter century. It also contains new provisions on the development of digital commerce and investment in innovative products and services.

The agreement extends other intellectual property rights, such as. B extending copyright protection for 50 years in NAFTA to 70 years. It also includes new criminal penalties for the theft of trade secrets, including cyber theft. On December 9, 2019, Fox News reported that negotiators from the three countries reached an agreement on implementation, paving the way for a final agreement within 24 hours and ratification by all three parties before the end of the year. Mexico has agreed to impose a minimum wage of $16 per hour for Mexican auto workers by a “neutral” third party. Mexico, which imports all of its aluminum, also objected to the provisions relating to the U.S. steel and aluminum content of automotive components. [37] The cheese agreement between the United States and Mexico. (PDF, 3 pages, 0.01 MB) Canada ratified the agreement in March and the USMCA came into force on July 1, 2020. Although NAFTA is officially dead, governments and businesses are still adapting to the new rules, especially the new labour rules. Coronavirus can also complicate implementation as manufacturers adapt to new guidelines in the midst of a global economic crisis.

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, the new agreement also provides that 40 to 45 per cent of parts of a non-tariff vehicle must come from a so-called high-wage plant. These plants must pay at least $16 per hour in average wages for production workers. That`s about three times the average wage at a Mexican plant right now, and government officials hope that this provision will force automakers to buy more supplies from Canada or the United States, or raise wages in Mexico.

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