Us Trade Agreement With Mexico And Canada
The Trump administration`s office proposed the USMCA citing new measures for digital commerce, strengthening the protection of trade secrets and adapting the rules of origin of automobiles among the benefits of the trade agreement.  U.S. dairy farmers will have new export opportunities to sell dairy products in Canada. Canada will provide new access to U.S. products, including liquid milk, cream, butter, skimmed milk powder, cheese and other dairy products. It will also eliminate its tariffs on whey and margarine. For poultry, Canada will provide new access to chickens and eggs in the United States and increase access for turkeys. Under a modernized agreement, all other tariffs on agricultural products traded between the United States and Mexico remain zero. Sectoral chapters, including Chapter 12, on FDA-regulated products have not been considered in most previous trade agreements, including NAFTA. Therefore, the inclusion of these annexes by the USMCA is an innovation not only in U.S.
trade policy, but also for international public health. Many analysts explain these differences in results by the fact that the Mexican economy is „two-speed“, where NAFTA has led the growth of foreign investment, high-tech production and wage growth in the industrial north, while the south, largely agricultural, has remained disconnected from this new economy. University of Pennsylvania economist Mauro Guillen argued that Mexico`s growing inequality is due to NAFTA workers receiving much higher wages from trade-related activities in the north. The United States, Mexico and Canada have accepted non-discrimination and transparency obligations in sales and distribution, as well as labelling and certification provisions, to avoid technical barriers to trade in distilled wine and spirits. They agreed to continue to recognize bourbon whiskey, tennessee whiskey, tequila, mezcal and Canadian whiskey as distinctive products. The USMCA will have an impact on the way Member States negotiate future free trade agreements. Section 32.10 requires USMCA countries to notify USMCA members three months in advance if they plan to enter into free trade negotiations with non-market economies. Article 32.10 authorizes USMCA countries to review new free trade agreements.
It is generally speculated that Article 32.10 targets China.  In fact, a senior White House official said of the USMCA agreement: „We were very concerned about China`s efforts to undermine the U.S. position by reaching agreements with others.“  When NAFTA negotiations began in 1991, the goal for all three countries was to integrate Mexico into the developed and high-income economies of the United States and Canada. The hope was that freer trade would bring stronger and more stable economic growth to Mexico by providing new jobs and opportunities for its growing workforce and discouraging illegal immigration. For the United States and Canada, Mexico has been seen as both a promising export market and a less expensive investment site that can improve the competitiveness of U.S. and Canadian businesses. Agriculture, in particular, has seen a boost. Canada is the largest importer of U.S. agricultural products, and Canadian agricultural trade with the United States has more than tripled since 1994, as has Canada`s overall agricultural exports to NAFTA partners.
The United States had already concluded a free trade agreement with Canada in 1988, but the addition of a less developed country such as Mexico was unprecedented. Opponents of NAFTA have taken up wage differences with Mexico, which had only 30 percent of U.S. per capita income. U.S. presidential candidate Ross Perot said in 1992 that trade liberalization would lead to a „huge aspirational sound“ from the United States.