And so I — although the agreement has progressed, he has not done enough. On June 1, 2020, the USTR Office issued the uniform rules[30] which are the last hurdle before the implementation of the agreement on July 1, 2020. The three heads of state and government – President Donald Trump, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pea Nieto – signed the agreement in late 2018, but the latest revisions must also be approved by the legislature and the leaders of each country before it comes into force. On December 12, 2019, the Mexican Senate adopted the revised treaty by 107 votes to 1. [89] On April 3, 2020, Mexico announced its readiness to implement the agreement and joined Canada,[15] although it requested that its auto industry have additional time to comply with the agreement. [90] NAFTA did not contain an update deadline or sunset clause. The USMCA Sunset Clause requires participating parties to review and renegotiate their terms after or before the 16th year after their implementation – or to withdraw completely from the agreement. This ensures that trade issues are not overlooked. During the 2016 presidential campaign, Donald Trump called the North American Free Trade Agreement (NAFTA) “the worst trade deal ever” and pledged to renegotiate and modernize the agreement if he were to become president.

The dairy sector has been a particularly problematic sticking point in the year-long negotiations between the three countries. Both the United States and Canada have a long history of protectionist measures, such as subsidies to dairy farmers and the setting of import quotas for milk. Canadian tariffs on certain products can be as high as 300%. Four years later, President Trump officially signed a new agreement with the current U.S.-Mexico-Canada Treaty (USMCA), which came into effect on July 1, 2020. The provisions of the Convention cover a wide range of agricultural products, homelessness, industrial products, working conditions and digital commerce. Among the most important aspects of the agreement are improving U.S. dairy farmers` access to the Canadian market, guidelines for a greater proportion of automobiles produced in the three countries and not imported from other countries, and maintaining the dispute settlement system, which is similar to that contained in NAFTA. [35] [38] The new agreement has also led to major changes for automakers in the hope of producing more vehicles and parts in North America. On December 9, 2019, Fox News reported that negotiators from the three countries reached an agreement on implementation, paving the way for a final agreement within 24 hours and ratification by all three parties before the end of the year.

Mexico has agreed to impose a minimum wage of $16 per hour for Mexican auto workers by a “neutral” third party. Mexico, which imports all of its aluminum, also objected to the provisions relating to the U.S. steel and aluminum content of automotive components. [37] Under the new agreement, Canada will completely exit the investor-state dispute settlement (EIRD), although the regime is maintained in some cases between the United States and Mexico. This means that investors in Canada and the United States no longer have access to investor-state dispute resolution in these countries. On May 11, 2018, House Of Representatives spokesman Paul Ryan set May 17 as the deadline for congressional action. This deadline was not met and the agreement with Mexico was not reached until August 27, 2018. [33] At that time, Canada had not approved the agreement.