On April 3, 2020, Canada notified the United States and Mexico that it had completed its domestic ratification process for the agreement. [104] Fox News reported on December 9, 2019, that negotiators from the three countries reached an agreement on the application of the law, paving the way for a final agreement within 24 hours and ratification by all three sides before the end of the year. Mexico has agreed to the application of a minimum wage of $16 an hour for Mexican autoworkers by a “neutral” third party. Mexico, which imports all of its aluminum, has also spoken out against regulations on U.S. steel and aluminum content in automotive components. [37] The Trump administration office of the United States Trade Representative proposed the USMCA, listing new digital trade measures, strengthening trade secret protections and adjustments to rules of origin for motor vehicles as some of the benefits of the trade agreement. [112] The USMCA is expected to have very little impact on the economy. [108] An International Monetary Fund (IMF) working paper released at the end of March 2019 stated that the agreement would have a “negligible” impact on the economy as a whole. [108] [113] The IMF study predicted that the USMCA would “affect trade in automobiles, textiles, and clothing, while generating modest overall gains in well-being, primarily through better access to the commodity market with negligible impact on real GDP.” [113] The IMF study found that the economic benefits of the USMCA would be significantly increased if there was an end to Trump`s trade war (i.e., if the U.S. abolished tariffs on steel and aluminum imports from Canada and Mexico, and Canada and Mexico dropped retaliatory tariffs on imports from the United States).

[113] In 1994, the United States, Mexico and Canada created the world`s largest free trade region with the North American Free Trade Agreement (NAFTA), generating economic growth and helping to raise the standard of living of the people of the three member countries. By strengthening trade and investment rules and procedures, this agreement has proven to be a solid foundation for building Canada`s prosperity and has provided a valuable example of the benefits of trade liberalization for the rest of the world. The new agreement between Canada, the United States and Mexico will serve to strengthen Canada`s strong economic ties with the United States and Mexico. In addition, there is a provision that the agreement itself must be reviewed by the three countries every six years, with a 16-year sunset clause. The agreement may be extended for a further 16 years during the semi-annual examinations. [51] The introduction of the sunset clause gives more control over the future of the USMCA in the hands of national governments. However, there is concern that this could lead to greater uncertainty. Industries such as automotive manufacturing require significant investments in cross-border supply chains. [52] Given the predominance of the U.S. consumer market, this is likely to increase pressure on firms to locate more production in the U.S., which is more likely to result in higher production costs for these vehicles. [53] In a major concession to the Democrats, the Trump administration agreed to postpone some protections for an advanced and very expensive class of drugs called biologics. The final agreement repeals a provision that provided drugs with 10 years of protection against lower-cost alternatives in Canada and Mexico.

On June 1, 2020, the USTR Office issued the Uniform Rules,[30] which are the last hurdle before the agreement is implemented on July 1, 2020. Microsoft is improving the shopping experience to better support all customers, whether you`re starting a digital transformation or securing your place in a competitive marketplace. .