Home Business-newBusiness The USMCA will enter into force on Wednesday, July 1st

The USMCA will enter into force on Wednesday, July 1st

by Yucatan Times
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On April 24, U.S. Trade Representative Robert Lighthizer notified the U.S. Congress that “Canada and Mexico had taken measures necessary to comply with their commitments under the United States – Mexico – Canada Agreement (USMCA), and that the Agreement will enter into force on July 1, 2020.”

The deal, which replaces the 1994 North American Free Trade Agreement (NAFTA), binds nearly half a billion consumers in a single market.

The enforcement of the agreement “marks the beginning of a historic new chapter for North American trade,” the USTR said.

The USMCA was created when President Donald Trump forced Canada and Mexico to renegotiate the trade deal, threatening to scrap NAFTA outright unless it was revamped.

Trump had long targeted NAFTA, which he said had resulted in sending US jobs abroad.

At the end of marathon talks, the three parties signed the initial version of the deal in November 2018.

Mexico ratified it in December 2019, Trump signed it into law in January 2020, and Canada’s parliament adopted it in March.

The USMCA changes rules on auto manufacturing to boost US jobs and requires higher salaries for some Mexican auto workers. It also makes changes to e-commerce, intellectual property protections, and dispute settlement for investors, as well as imposing tougher labor provisions, requiring reforms to Mexico’s laws.

USTR said the deal would “deliver more jobs, provide stronger labor protections and expand market access, creating new opportunities for American workers, farmers, and ranchers.”

US Trade Representative Robert Lighthizer, who led Trump’s negotiating team, said: “The crisis and recovery from the COVID-19 pandemic demonstrate that now, more than ever, the United States should strive to increase manufacturing capacity and investment in North America.”

I’ve called the entry into force of the trade deal a “landmark achievement in that effort.”

Christopher Landau, the U.S. ambassador in Mexico, said it’s time for the three nations to work together:

Jesús Seade, the Deputy Secretary for North America, said the trade deal is crucial for the tree countries.

Mexico’s Finance Minister, Graciela Márquez, also acknowledged the announcement:

Source: El Universal

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