A new addition to the USMCA is the inclusion of Chapter 33, which covers macroeconomic policies and exchange rate issues. This is considered important because it could set a precedent for future trade agreements. [54] Chapter 33 sets out requirements for currency and macroeconomic transparency that, in the event of a breach, would be grounds for litigation under Chapter 20. [54] The United States, Canada and Mexico currently meet all of these transparency requirements in addition to substantive policy requirements that comply with the international Monetary Fund`s articles. [55] The provisions of the Convention cover a wide range of products, including agricultural products, the homeless, industrial products, working conditions and digital trade. Among the most important aspects of the agreement are improving U.S. dairy farmers` access to the Canadian market, guidelines for a greater proportion of automobiles produced in the three countries and not imported from other countries, and maintaining the dispute settlement system, which is similar to that contained in NAFTA. [35] [38] On Wednesday, U.S. Trade Representative Robert Lighthizer was billed in a USMCA video as „the largest, most cost-effective and modern trade agreement in our history,“ adding that it would create tens of thousands of new jobs in U.S.

production. The agreement also expands these obligations by requiring more protection for workers, blocking imports of goods subject to forced labour and putting in place mechanisms to ensure the application of these rules. NAFTA has three primary dispute resolution mechanisms. Chapter 20 is the settlement mechanism for countries. It is often considered the least controversial of the three mechanisms, and has been maintained in its original form from NAFTA to the USMCA. In such cases, complaints filed by USMCA Member States against the duration of the contract would be violated. [48] In Chapter 19, the justifications for anti-dumping or countervailing duties are managed. Without Chapter 19, the avenue of recourse for the management of these policies would be through the national legal system. Chapter 19 provides that an USMCA body hears the case and acts as an international commercial tribunal to arbitrate the dispute. [48] The Trump administration has attempted to remove Chapter 19 of the new USMCA text, which until now existed in the agreement.

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] On the other hand, a judgment would undermine Mexico`s ability to comply with provisions to terminate employment contracts that were entered into without the agreement of the workers and which were stacked in favour of companies and which kept wages chronically low in Mexico. Last year, U.S. Congressional Democrats insisted on stricter labor rules before giving their approval, leading to a substantial renegotiation of the terms agreed in October 2018. The arrest of Susana Prieto, an expert on labour law in Mexico, in early June has fuelled arguments by U.S. unions that mexican workers` rights are not adequately protected. In a major concession to Democrats, the Trump administration has agreed to support some protective measures for a class of drugs called advanced and very expensive drug biologists.

The final agreement nullifies a provision that, for ten years, provided protection for drugs from cheaper alternatives in both Canada and Mexico. The Canada-Mexico-U.S. trade agreement will officially enter into force on July 1. U.S. Secretary of State Mike Pompeo welcomed the launch and called the agreement „a new engine of growth in the 21st century that will keep North America the most economically competitive region in the world.“ On April 24, 2020, U.S. Trade Representative Robert Lighthizer

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