Usmca Agreement Status

For the first time, the new agreement also provides that 40 to 45% of the parts of a non-tariff vehicle must come from a so-called high-paying factory. These factories have to pay at least $16 an hour in average wages for production workers. That`s currently about three times the average wage at a Mexican plant, and government officials hope the provision will force automakers to buy more deliveries from Canada or the U.S. or raise wages in Mexico. The agreement between the United States, Mexico and Canada (USMCA) will be „the best and most important trade agreement ever concluded by the United States. It`s good for everyone – farmers, producers, energy, unions – huge support,” he tweeted. On December 12, 2019, the Mexican Senate adopted the revised treaty by 107 votes to 1. [89] On April 3, 24, 2020, Mexico announced its willingness to implement the agreement and joined Canada,[15] although it asked its automotive industry for additional time to comply with the agreement. (PDF, 3 pages, 0.01 MB) On December 12, 2019, the Mexican Senate adopted the revised treaty by 107 votes to 1.

[89] On April 3, 2020, Mexico announced that it was ready to implement the agreement and join Canada,[15] although it requested that its automotive industry have additional time to comply with the agreement. [90] The USMCA is expected to have very little impact on the economy. [108] An International Monetary Fund (IMF) working paper released in late March 2019 established that the agreement would have a „negligible” impact on the economy as a whole. [108] [113] According to the IMF study, the USMCA „would affect trade in the automotive, textile, and apparel sectors, while generating modest overall gains in welfare, fueled primarily by improved market access for goods with negligible effects on real GDP.” [113] The IMF study found that the economic benefits of the USMCA would be significantly increased if the Trump trade war ended (i.e., if the U.S. removed tariffs on steel and aluminum imports from Canada and Mexico, and Canada and Mexico dropped retaliatory duties on imports from the U.S.). [113] The North American Free Trade Agreement (NAFTA), signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas and the United States.

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