Ustr Usmca Agreement
To facilitate the strengthening of cross-border trade, the United States has reached an agreement with Mexico and Canada to increase the value of de minimis delivery. For the first time in decades, Canada will increase its de minimis level from $20 to $40 for taxes. Canada will also offer duty-free shipments of up to 150 $US. Mexico will continue to provide $50 of tax-exempt de minimis and will also provide duty-free shipments up to the equivalent of $117. Shipping rates to this level would be achieved with minimum formal entry procedures, which would allow more businesses, particularly small and medium-sized enterprises, to be part of cross-border trade. For the first time, a trade agreement requires that the renegotiated agreement include a chapter on macroeconomic policies and exchange rate issues, with new political and transparent monetary commitments. The chapter will address unfair monetary practices by requiring high-level commitments to avoid any devaluation of competition and to target exchange rates, while significantly increasing transparency and providing accountability mechanisms. This approach is unprecedented in the framework of a trade agreement and will contribute to strengthening macroeconomic stability and exchange rates. The United States, Mexico and Canada have reached an agreement to modernize NAFTA, which is 25 years old, into a high-level agreement of the 21st century. The new agreement between the United States and Mexico-Canada (USMCA) will support mutually beneficial trade, which will lead to freer markets, fairer trade and robust economic growth in North America.
The United States, Mexico and Canada have agreed on stricter rules of origin that exceed those of NAFTA 1.0 and the Trans-Pacific Partnership (TPP), including for cars and auto parts and other industrial products such as chemicals, steel-intensive products, glass and fibreglass. The full text of the agreement between the United States, Mexico and Canada is available here. The “Environment” chapter contains the most comprehensive environmental commitments applicable to a previous U.S. agreement, including obligations to combat trade in wild plants, wood and fish; Strengthen law enforcement networks to curb human trafficking; and address pressing environmental issues, such as air quality and marine waste. The U.S.-Mexico-Mexico Agreement (USMCA) is a trade agreement between these parties. The USMCA replaced the North American Free Trade Agreement (NAFTA). The new “Access to the Market” chapter will more effectively support trade in industrial products between the United States, Mexico and Canada by removing provisions that are no longer relevant, updating key references and confirming commitments under the original agreement.
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