The Treaty between Mexico, the United States and Canada (T-MEC, or USMCA) will enter into force on July 1, even though some sectors, including the automotive industry, asked to postpone this start.
The United States Trade Representative (USTR) reported this Friday that the internal process for the implementation of this trilateral agreement has concluded.
The United States was the only one of the three countries that had not yet completed this process.
On January 29, 2020, President Donald Trump signed legislation implementing the T-MEC. After more than a year of additional consultations with Congress, on December 10, 2019, the United States, Mexico and Canada signed a protocol to amend this new treaty that further strengthens compliance with its labor and environmental commitments.
“The entry into force of the T-MEC is a historic achievement in that effort. Under President Trump’s leadership, the USTR will continue to work to ensure a smooth implementation of the T-MEC so that American workers and companies can enjoy the benefits of the new agreement,” said Robert Lighthizer, head of the USTR in a statement. .
T-MEC and Trump
From the perspective of the US government, the new treaty modernizes and rebalances US trade relations with Mexico and Canada to benefit US workers and companies and reduces incentives to outsource by providing strong labor and environmental protections, rules of origin innovative and revised investment provisions.
The T-MEC also includes labor and environmental obligations in the central text of the Treaty and makes them fully applicable.
Finally, it includes a series of provisions to combat non-market practices, such as subsidies and currency manipulation, among other provisions.
“The entry into force of the T-MEC marks the beginning of a new landmark chapter for North American trade by supporting more balanced and reciprocal trade, leading to freer markets, fairer trade and robust economic growth in North America,” USTR said in a statement.