The US-Mexico-Canada Agreement (USMCA) has been making headlines recently as countries race to put the trade deal into force before the end of the year. The agreement, which replaces the 25-year-old North American Free Trade Agreement (NAFTA), has been hailed by US President Donald Trump as a major victory for American workers. The deal has faced a number of hurdles, however, including concerns over labor standards and intellectual property protections.
The USMCA was signed by the leaders of the three countries in November 2018, but it has taken nearly two years to ratify the agreement and put it into action. Mexico was the first country to approve the deal in June 2019, followed by the US in January of this year. Canada was the last country to ratify the agreement, with the Canadian parliament approving it on March 13, 2020.
The USMCA is expected to have a number of benefits for all three countries, including increased trade and investment. The agreement includes provisions designed to boost the auto industry and strengthen protections for intellectual property. It also includes new measures aimed at improving labor standards, which have been a major sticking point in negotiations.
One of the major concerns around the USMCA has been the potential impact on the dairy industry in Canada. The agreement includes provisions that will allow American dairy farmers greater access to the Canadian market, which has led to concerns among Canadian dairy farmers that they will be undercut by American imports.
Despite these concerns, the Canadian government has argued that the deal is a significant improvement over NAFTA and will benefit Canada in the long run. Prime Minister Justin Trudeau has called the agreement « a win for Canada and for Canadian workers. »
Now that the USMCA has been ratified by all three countries, the focus is on putting the agreement into action. This includes implementing the new labor and intellectual property provisions, as well as integrating the agreement into existing trade relationships.
Overall, the USMCA is a major development in North American trade relations. While it is not without its challenges, the agreement is expected to benefit all three countries and will likely have a significant impact on the global economy in the years to come.