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The Trump administration`s office proposed the USMCA citing new measures for digital commerce, strengthening the protection of trade secrets and adapting the rules of origin of automobiles among the benefits of the trade agreement. [112] This agreement is the result of a renegotiation between member states of the North American Free Trade Agreement between 2017 and 2018, which informally approved the terms of the new agreement on 30 September 2018 and officially on 1 October. [10] The USMCA was proposed by U.S. President Donald Trump and signed on November 30, 2018 by Trump, Mexican President Enrique Pea Nieto and Canadian Prime Minister Justin Trudeau as a secondary event of the 2018 G20 summit in Buenos Aires. A revised version was signed on December 10, 2019 and ratified by the three countries, with final ratification (Canada) taking place on March 13, 2020 just before the Canadian Parliament adjourned due to the COVID-19 pandemic. But all parties agreed on one thing: the words “free trade” do not appear in the version of anyone`s name. Unlike the many trade agreements negotiated and signed since 1945, the USMCA is not primarily designed to liberalize government trade and investment restrictions. Instead, new conditions for duty-free processing of goods at the border are added and supply chains are encouraged to enter into contracts to recover more production and jobs in North America, and within North America it concentrates more economic activity in the United States. Even new elements of the agreement, such as digital trade and intellectual property, reconcile Canada and Mexico with U.S. political preferences in these areas. In 1994, the United States, Mexico and Canada, with the North American Free Trade Agreement (NAFTA), created the world`s largest free trade region, which generated economic growth and helped improve the living standards of the people of the three member countries. By strengthening trade and investment rules, this agreement has proven to be a solid foundation for building Canada`s prosperity and has provided a valuable example of the benefits of trade liberalization for the rest of the world. The new Canada-U.S.-Mexico agreement will strengthen Canada`s strong economic ties with the United States and Mexico.

The negotiations focused “primarily on car exports, tariffs on steel and aluminum, as well as the milk, egg and poultry markets.” A provision “prevents any party from enacting laws that restrict the cross-border flow of data.” [11] Compared to NAFTA, the USMCA increases environmental and labour standards and encourages domestic production of cars and trucks. [12] The agreement also provides up-to-date intellectual property protection, gives the United States more access to the Canadian milk market, imposes a quota for Canadian and Mexican auto production, and increases the tariff limit for Canadians who purchase U.S. purchasing countries.