13 Okt Usmca Agreement Explained
On June 1, 2020, the USTR office issued the Uniform Rules, the last hurdle before the agreement was implemented on July 1, 2020. An April 2019 International Trade Commission analysis of the likely effects of the USMCA estimated that the agreement, if fully implemented (six years after ratification), would increase U.S. real GDP by 0.35 percent and increase total U.S. employment by 0.12 percent (176,000 jobs).   The analysis cited in another Congressional Research Service study showed that the agreement would not have a measurable impact on employment, wages, or overall economic growth.  In the summer of 2019, Larry Kudlow (the director of the National Economic Council of the Trump White House) made unfounded allegations about the likely economic impact of the deal and exaggerated forecasts in terms of jobs and GDP growth.  The agreement gives U.S. farmers additional access to foreign markets, particularly in Canada. It does not demonize Canada`s “supply management system,” which dictates how much Canadian farmers must produce in order for them to be profitable.
But Canada has agreed to eliminate a program that helps sellers of certain dairy products in Switzerland and abroad and opens its market to U.S. milk, cream, butter, cheese and other products. In return, the U.S. has expanded market access for Canadian dairy products and sugar. On March 1, 27, 2019, many organizations representing the agricultural sector in the United States announced their support for the USMCA and asked Congress to ratify the agreement. They also called on the Trump administration to maintain NAFTA until the new trade agreement is ratified.  On March 4, however, House Ways and Means President Richard Neal predicted a “very hard” path through Congress for the deal.  Beginning March 7, senior White House officials met with members of the House Ways and Means as well as moderate caucuses from both sides, such as the Solvers Caucus, the Tuesday Group, and the Blue Dog Coalition, to gain support for ratification.
The Trump administration has also withdrawn from the threat to withdraw from nafta, as negotiations with Congress continue.  In order to increase cross-border trade, the United States has entered into an agreement with Mexico and Canada regarding the increase of their de minimis shipping value. For the first time in decades, Canada will increase from C$20 ($15.38) to C$40 ($30.77) for taxes. Canada also provides duty-free shipments of up to C$150 ($115.38). Mexico will continue to provide $50 tax-free de minimis and will also offer duty-free shipments worth $117. Shipment values up to these levels would occur with minimal formal entry procedures, making it easier for more businesses, especially small and medium-sized enterprises, to be part of cross-border trade. . . .