New Trade Agreement With Mexico And Canada
Mexican politicians saw NAFTA as an opportunity to accelerate and block these hard-hit reforms in the Mexican economy. In addition to trade liberalization, Mexican leaders have reduced public debt, introduced a balanced budget rule, stabilized inflation and built up the country`s foreign exchange reserves. Although Mexico was hit hard by the 2008 financial crisis because of its dependence on exports to the U.S. market – the following year, Mexican exports to the United States fell by 17% and its economy fell by more than 6% – its economy rebounded fairly quickly and returned to growth in 2010. But the most important aspect for Canada – opening up its economy to the United States, by far Canada`s largest trading partner – was before NAFTA, when the Canadian United States came into force in 1989. Free Trade Agreement (CUSFTA). Total Canada-U.S. Trade rose rapidly in the wake of trade liberalization in Canada. After NAFTA, Canadian exports to the United States increased from [PDF] $110 billion to $346 billion; Imports from the United States increased almost as sharply. 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.”  Some of the main points of disagreement are between the United States and Mexico. U.S. Trade Representative Robert Lighthizer said last month that he was already anticipating fierce battles with Mexico over labor, biotechnology, intellectual property and energy, all of which are areas of interest to Capitol Hill lawmakers. The new chapter of digital commerce contains the strongest digital trade disciplines of an international agreement and provides a solid foundation for the development of trade and investment in innovative products and services for which the United States has a competitive advantage. Trump called the USMCA “the best and most important trade agreement of all time in the United States,” but it is not expected that the agreement will significantly increase trade in the region.