Late night Sunday, an agreement was reached by the United States and Canada, alongside Mexico, regarding the modernization of the North America Free Trade Agreement, which will now be called the United States-Mexico-Canada Agreement (USMCA).
The USMCA text was published yesterday. You can access the text of this free trade agreement through the following link of the United States Trade Representative website: USTR – USMCA
USMCA is composed of 34 chapters, 12 more than the original NAFTA. VTZ will prepare a working paper about this new deal, which should be available in the upcoming days. Please let us know, through an email, if you would like to receive it.
This week on the Trading Room:
Esta semana en “Trading Room”:
This week on the Trading Room: NAFTA (Rules of Origin) and China & United States.
Esta semana en “Trading Room”: TLCAN (Reglas de Origen) y China & Estados Unidos.
Today, August 2, 2017, the Senate released a document entitled “Notice regarding the Initiation of the Negotiations regarding NAFTA’s modernization” that was provided by the Ministry of Economy. In said document, the Ministry of Economy explained the reasons why it should participate in the renegotiation. We highlight the following statements:
Furthermore, the Ministry of Economy also published Mexico’s priorities in NAFTA’s negotiation. In harmony with recent statements from the Mexican Minister of Economy, the document does not specify specific objectives. However, it is mentioned that Mexico has the following priorities: 1. Strengthening the competitiveness of the region, 2. An Inclusive and Responsible Regional Trade, 3. Reap the Benefits of the XXI century economy, and 4. Foster Security and Predictability in North American Trade & Investment.
In that sense, if NAFTA is modernized it should create the following benefits:
In conclusion, the Ministry of Economy stated that the objective is to have an expedite negotiation process and maintain Mexico’s benefits.
antidumping, Chapter 11 NAFTA, Chapter 19 NAFTA, Chapter 20 NAFTA, Energy, Free Trade Agreement, Mexican Ministry of Economy, Mexico, NAFTA, NAFTA negotiation, negotiation, Objectives, Priorities, Rules of Origins, United States, USA