64 frequently asked questions about the USMCA: from 1 to 3
The Ministry of Economy published a list of 64 frequently asked questions about the Treaty between Mexico, the United States and Canada (USMCA).
These are the first three:
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What is included within Chapter (1) Initial Provisions and General Definitions of the USMCA?
Chapter 1 of the USMCA incorporates the objectives of the Treaty in the Preamble and expands the general definitions based on the Agreements of the World Trade Organization (WTO) and the definitions of other Treaties, seeking to update these definitions to economic reality global and international trade of the XXI century.
It also confirms the existing rights and obligations between the Parties under the WTO Agreements.
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What is the purpose of Chapter (2) of National Treatment and Market Access of the USMCA?
The objective of Chapter 2 is to provide greater certainty and transparency to the commercial exchange of merchandise between Mexico, the United States and Canada, in order to facilitate and promote trade in the North American region.
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What are the main provisions of Chapter (2) of National Treatment and Market Access of the USMCA?
- Free trade is maintained for all originating goods and the prohibition of the application of export taxes, the disciplines that regulate the application of import and export restrictions, the system of return and deferral of customs duties and a ban on applying performance requirements for exemption from customs duties.
- The disciplines on the temporary importation of goods, goods reimported after repair or alteration are updated; commercial samples and printed advertising materials, among others.
- New disciplines on import and export licenses are included that establish notification and transparency commitments for existing measures, their modifications and the application of new measures.
- New disciplines are incorporated to regulate the trade of remanufactured goods in the region to avoid that these products are subject to restrictions imposed on used goods and provisions that restrict the application of consular transactions and their applied rates,
- The functions of the Committee on Trade in Goods are strengthened to ensure the proper functioning of the chapter and as a forum for consultation between the Parties to resolve issues related to this Chapter.
