Posted on December 19, 2020
The USMCA replaces the North American Free Trade Agreement, which eliminated most of the trade barriers between the United States, Canada and Mexico. On December 10, 2019, the three countries reached a revised USMCA agreement. On January 29, 2020, Deputy Prime Minister and Minister of Intergovernmental Affairs Chrystia Freeland introduced the USMCA C-4 Transposition Act in the House of Commons and passed the first reading without a registered vote. On February 6, the bill passed second reading in the House of Commons by 275 votes to 28, with the Bloc Québécois voting against and all other parties voting in its favour, and it was referred to the Standing Committee on International Trade.    On 27 February 2020, the committee voted to send the bill to Parliament for third reading, without amendments. On the other hand, critics of the agreement claim that it is responsible for job losses and wage moderation in the United States, driven by low-wage competition, from companies that have relocated their production to Mexico to reduce costs and a growing trade deficit. Dean Baker of the Centre for Economic and Political Research (CEPR) and Robert Scott of the Economic Policy Institute argue that the post-NAFTA increase in imports has resulted in a loss of up to six hundred thousand U.S. jobs over two decades, although they acknowledge that some of this import growth would likely have occurred without NAFTA. The agreement between the United States of America, the United States of Mexico and Canada, commonly known as the United States-Mexico-Canada Agreement (USMCA), is a free trade agreement between Canada, Mexico and the United States in lieu of the North American Free Trade Agreement (NAFTA).
   The agreement has been referred to as NAFTA 2.0 or “New ALEFTA, since many nafta provisions have been introduced and its amendments have been found to be largely incremental. On 1 July 2020, the USMCA came into force in all Member States. WASHINGTON (AP) – The Senate on Thursday overwhelmingly approved a new North American trade deal that outlines trade rules with Canada and Mexico and gives President Donald Trump a major political victory before senators turn their attention to his impeachment process. The agreement is the result of a renegotiation between the member states of the North American Free Trade Agreement, which gave informal agreement on 30 September 2018 and officially on 1 October under the new agreement.  The USMCA was proposed by U.S. President Donald Trump and signed on November 30, 2018 by Trump, Mexican President Enrique Pea Nieto and Canadian Prime Minister Justin Trudeau as a secondary event of the 2018 G20 summit in Buenos Aires. A revised version was signed on December 10, 2019 and ratified by the three countries, with final ratification (Canada) taking place on March 13, 2020 just before the Canadian Parliament adjourned due to the COVID-19 pandemic. Take advantage of U.S. farmers, ranchers and agricultural businesses by modernizing and strengthening food and agricultural trade in North America. In accordance with Section 103 (b) (2) of the USMCA Act, the date of the interim provisions to be recommended will be set no later than after the USMCA comes into force and the implementation of the uniform rules of origin.
 Uniform regulations at the USMCA help interpret the various chapters of the USMCA, first chapters 4-7. These rules were published one month before the trade agreement came into force and replaced NAFTA on July 1, 2020.  The USMCA is expected to have very little impact on the economy.  An International Monetary Fund (IMF) discussion paper published at the end of March 2019 stated that the agreement would have a “negligible” impact on the general economy.   The IMF study predicted that the USMCA “would have a negative impact on trade in the automotive, textile and clothing sectors, while achieving modest welfare gains, mainly due to improved access to the goods market, with a negligible impact on real GDP.”  The IMF study found that the economic benefits of the USMCA would be significantly improved, we