Canada ratified the agreement in March and the USMCA came into force on July 1, 2020. Although NAFTA is officially dead, governments and businesses are still adapting to the new rules, especially the new labour rules. Coronavirus can also complicate implementation as manufacturers adapt to new guidelines in the midst of a global economic crisis. “The USMCA is the largest, largest, most modern and balanced trade agreement in history. All of our countries will benefit from this. President Donald J. Trump Before we get closer, here`s a little bit of a background. The World Trade Organization (WTO) is the multilateral organization that has established the basic rules of trade among its 164 member states, including the United States. Within the WTO, there are two non-tariff agreements that directly affect FDA regulators: the Agreement on the Application of Health and Plant Health Measures (SPS), which includes food and animal safety measures essential to the protection of human and animal health, and the agreement on technical barriers to trade or the CTA, which covers the technical rules necessary to ensure compliance with FDA requirements (and packaging). transparency, normative measures and compliance assessment. The agreed text of the agreement was signed by the heads of state and government of the three countries on November 30, 2018, as an incidental 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] Sector chapters, including Chapter 12, relating to 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. The USMCA is updating and replacing the 25-year-old North American Free Trade Agreement (NAFTA). Work on the new agreement took several years, had to be approved by both houses of Congress and required all three countries to certify that they were complying with the various measures of the agreement. Certifications were finalized earlier this year, allowing the agreement to enter into force. UsmCA rules will apply from July 1, 2020. Here`s a look at the sections of the USMCA that affect the FDA: In addition, there is a provision that the agreement must be reviewed by the three nations themselves every six years, with a sunset clause of 16 years. The contract may be renewed for a period of 16 years during the six-year review period. [51] The introduction of the Sunset clause gives more control in the organization of the future of the USMCA in the hands of national governments. However, there is concern that this could lead to greater uncertainty.
Sectors such as automotive require significant investment in cross-border supply chains. [52] Given the dominant position of the U.S. consumer market, it is likely that this will put pressure on companies to establish more production in the United States, with a higher probability of higher production costs for these vehicles. [53] In 1994, with the North American Free Trade Agreement (NAFTA), the United States, Mexico and Canada created the world`s largest free trade region, which generated economic growth and helped improve the standard of living of the population in 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.