What Is The New Trade Agreement

Looking for more information on duty-free imports of goods under the new trade agreement? To learn more about certification requirements, click here. USMCA certification is expected to have very little impact on the economy. [108] 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. [108] [113] 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.” [113] The IMF study found that the economic benefits of the USMCA would be greatly enhanced if Trump`s trade war ended (i.e., if the United States repealed import tariffs steel and aluminum from Canada and Mexico and Canada and Mexico lowering retaliatory duties on imports from the United States) [113] But the United States.M.C.A. maintain a more controversial addition to the Trump administration – a sunset clause obliging three countries after six years, to verify that they remain in the agreement. If a country decides not to pursue the pact, the U.S.M.C.A. expires 16 years later. On November 15, 2020, 15 countries – members of the Association of Southeast Asian Nations (ASEAN) and five regional partners – signed the Comprehensive Regional Economic Partnership (RCEP), probably the largest free trade agreement in history. The RCEP and the 2018 Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement, also dominated by East Asian members, are the only major multilateral free trade agreements signed during the Trump era.

On May 30, U.S. Trade Representative Robert E. Lighthizer presented Congress with a draft declaration on the administrative steps needed to implement the U.S.-Mexico Agreement (USMCA and the new NAFTA), in accordance with the 2015 Presidential Trade Promotion (TPA) Administrative Action Statement. The project will allow congress to be presented to Congress, after 30 days, on June 29, a law to implement the USMCA. In a letter [73] to Nancy Pelosi, House of Representatives spokeswoman Kevin McCarthy, the minority leader of the House of Representatives, the Republican, told Lighthizer that the USMCA was the gold standard in U.S. trade policy, modernizing the competitive trade in digital, intellectual property and services in the United States and creating a level playing field for U.S. businesses. , workers and farmers, an agreement that represents a fundamental shift in trade relations between Mexico and Mexico. 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.