Details Of Usmca Agreement

The agreement extends other intellectual property rights, such as. B extending copyright protection for 50 years in NAFTA to 70 years. It also includes new criminal penalties for the theft of trade secrets, including cyber theft. In the chapter “Health and Plant Health Measures” (SPS), the United States, Mexico and Canada agreed to strengthen disciplines for scientifically sound SPS measures, while ensuring that the parties respect their sovereign right to the protection of life, animals, animals and plants or health. The provisions provide for greater transparency in the development and implementation of SPS measures; Promoting scientific decision-making Improve certification, regionalization and equivalency processes Conducting system-based audits Improving the transparency of import controls; cooperation actions to improve the compatibility of the measures. The new agreement would establish a new mechanism for technical consultation between the parties to resolve the issues. On April 3, 2020, Canada informed the United States and Mexico that it had completed its national process of ratifying the agreement. [104] For the first time, the new agreement also provides that 40-45% of parts of a non-tariff vehicle must come from a so-called high-wage plant. These plants must pay at least $16 per hour in average wages for production workers.

That`s about three times the average wage at a Mexican plant right now, and government officials hope that this provision will force automakers to buy more supplies from Canada or the United States, or raise wages in Mexico. To facilitate the strengthening of cross-border trade, the United States has reached an agreement with Mexico and Canada to increase the value of de minimis delivery. For the first time in decades, Canada will increase its de minimis level from $20 ($15.38) to $40 ($30.77) for taxes. Canada will also offer duty-free shipments of up to 150 $US ($115.38). Mexico will continue to provide $50 de minimis exemptions and will also offer duty-free shipments of up to $117. Shipping rates to this level would be achieved with minimum formal entry procedures, which would allow more businesses, particularly small and medium-sized enterprises, to be part of cross-border trade. Canada will also allow the importer to pay taxes 90 days after the importer enters. The U.S.-Mexico agreement is based on the North American Free Trade Agreement (NAFTA), which originally came into force on January 1, 1994. The agreement under consideration was the result of more than a year of negotiations including possible U.S. tariffs on Canada, in addition to the possibility of separate bilateral agreements. [20] The agreed text of the agreement was signed by the heads of state and government of the three countries on 30 November 2018 as a secondary event at the 2018 G20 summit in Buenos Aires, Argentina. [34] The English, Spanish and French versions will also be binding and the agreement will take effect after ratification by the three states through the adoption of enabling laws.

[35] On November 30, 2018, the USMCA was signed as planned by the three parties at the G20 summit in Buenos Aires. [58] [59] Disputes over labour rights, steel and aluminum prevented ratification of this version of the agreement. [60] [61] Canadian Deputy Prime Minister Chrystia Freeland, U.S. Trade Representative Robert Lightizer, and Mexican Under-Secretary of State for North America Jesus Seade officially signed a revised agreement on December 10, 2019, ratified by the three countries on March 13, 2020.