In 1994, the United States, Mexico and Canada, with the North American Free Trade Agreement (NAFTA), created the world`s largest free trade region, which generated economic growth and helped improve the living standards of the people of the three member countries. By strengthening trade and investment rules, this agreement has proven to be a solid foundation for building Canada`s prosperity and has provided a valuable example of the benefits of trade liberalization for the rest of the world. The new Canada-U.S.-Mexico agreement will strengthen Canada`s strong economic ties with the United States and Mexico. On June 19, 2019, the Mexican Senate ratified the agreement (114 yes, 3 no, 3 abstentions).  Mexico`s ratification process will be completed when the President announces its ratification to the Federal Register. 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.  Several difficulties arose before and shortly after the treaty came into force on 1 July 2020. First, on May 31, 2019, President Trump said that from June 10, the United States would apply a 5% tariff on all Mexican imports. He threatened to increase tariffs if the Mexican government did not take tougher measures to reduce the number of Central American asylum seekers arriving in the United States from Mexico. On August 6, 2020, President Trump announced the reintroduction of tariffs initially instituted on Canadian aluminum.
On October 27, the same day that the Canadian government was due to present its retaliatory measures to trade, President Trump suspended tariffs retroactive to September 1. However, the U.S. Trade Representative`s office said the U.S. will be able to restore tariffs if aluminum imports from Canada “exceed 105 percent of the expected volume each month.” Signed on the sidelines of the G20 Heads of State and Government Summit in Buenos Aires in November 2018, the CUSMA results retain key elements of the long-standing trade relationship and incorporate new and updated provisions to address 21st century trade problems and create opportunities for nearly half a billion people. call North America at home. The United States, Mexico and Canada have agreed on the most advanced, comprehensive and highest environmental chapter of a trade agreement. Like the work chapter, the “Environment” chapter puts all environmental provisions at the heart of the agreement and makes them applicable. In his speech to the Senate, Grassley said the timing of the rapid launch of the trade agreement was problematic for the industry when it is “faced with significant disruptions in the COVID-19 supply chain.” Status in Trade Negotiations, including Updated Status On the USMCA`s detailed blog, you learned what`s new in the revised North American Free Trade Agreement (NAFTA).