U.s.-Mexico-Canada Free Trade Agreement

To facilitate the strengthening of cross-border trade, the United States has reached an agreement with Mexico and Canada to increase the value of de minimis delivery. For the first time in decades, Canada will increase its de minimis level from $20 to $40 for taxes. Canada will also offer duty-free shipments of up to 150 $US. Mexico will continue to provide $50 of tax-exempt de minimis and will also provide duty-free shipments up to the equivalent of $117. Shipping rates to this level would be achieved with minimum formal entry procedures, which would allow more businesses, particularly small and medium-sized enterprises, to be part of cross-border trade. Edward Alden of CFR says the fear of trade deals has increased because wages have not kept pace with labour productivity, while income inequality has increased. To some extent, he says, trade agreements have accelerated the pace of these changes because they have „strengthened the globalization of the U.S. economy.“ In the 2016 U.S. presidential election, Donald Trump`s campaign included a promise to renegotiate or eliminate NAFTA if the renegotiations fail.

[21] After the election, Trump made a series of changes that influenced trade relations with other countries. The exit from the Paris Agreement, the cessation of participation in the Trans-Pacific Partnership negotiations and the significantly larger increase in tariffs with China were some of the steps he took, which reinforced the fact that he was serious about changing NAFTA. [22] Much of the debate about the virtues and errors of the USMCA resembles the debate on all free trade agreements (FTAs), such as the nature of free trade agreements as public goods, potential violations of national sovereignty and the role of commercial, labour, environmental and consumer interests in the development of the language of trade agreements. The United States, Mexico and Canada have reached agreement on a modernized, quality chapter of intellectual property (IP) that provides effective protection and protection and intellectual property rights essential to promoting innovation, economic growth and supporting American jobs.