The formal negotiation process began on May 18, 2017, when the USTR announced to Congress its intention to renegotiate NAFTA starting at 90 days.  In accordance with the Articles of Association of the Trade Promotion Authority, the USTR published its document on July 7, 2017, its document on the main objectives of negotiation. Negotiations began on 16 August 2017 and continued with eight formal round tables until 8 April 2018. In the absence of a solution, Lighthizer said on May 2, 2018, that if no agreement was reached by the end of the month, negotiations would be suspended by 2019. This statement was motivated by the impending change of government in Mexico, in which the new president at the time, Andres Manuel Lopez Obrador, disagreed with much of the language negotiated and may not have been willing to sign the agreement. *The agreement stipulates that the value of the import does not exceed 1,000 USD or the corresponding amount in the currency of the significant party or a higher amount that the significant part can fix. In addition, there is a provision stating that the agreement itself must be reviewed every six years by the three nations, with a sunset clause of 16 years. The agreement can be extended by 16 years during the six years of revision.  The introduction of the sunset clause puts more control in the organization of the future of the USMCA in the hands of national governments. However, there is concern that this could lead to greater uncertainty.
Sectors such as automotive manufacturing require significant investments in cross-border supply chains.  Given the predominance of the consumer market in the United States, it is likely that this will put pressure on companies to install more production in the United States, with a greater likelihood of increasing the costs of producing these vehicles.  Set of 9 data elements that should not be available in a given format and that may appear on a commercial invoice or separate document. Annual flat-rate certifications are allowed The new USMCA Certification of Origin consists of 9 mandatory data elements and a declaration. This information may be indicated on any existing delivery note (e.g.B. commercial invoice) or on a separate document, and not in a specific order. They contain two new elements. On June 1, 2020, the USTR Robert Lighthizer office released the Uniform Rules, the last hurdle before the agreement was implemented on July 1, 2020. The text of the agreement is available here: ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/uniform-regulations USMCA countries must comply with IMF standards to prevent exchange rate manipulation. The agreement provides for the disclosure of market interventions.
The IMF may be convened as an arbitrator in the event of a dispute between the parties.  The provisions of the agreement cover a wide range of agricultural products, homelessness, industrial products, working conditions, digital trade and others. Among the most important aspects of the agreement are better access for U.S. dairy farmers to the Canadian market, guidelines for a greater proportion of automobiles produced in the three countries instead of being imported from other countries, and the maintenance of the dispute settlement system, similar to that contained in NAFTA.   On July 1, 2020, a new trade agreement between the United States, Mexico and Canada will replace the 25-year-old North American Trade Agreement (NAFTA). Each participating country has its own name. The USMCA is expected to have very little impact on the economy.  An International Monetary Fund (IMF) working paper released in late March 2019 established that the agreement would have a “negligible” impact on the economy as a whole.   According to the IMF study, the USMCA “would affect trade in the automotive, textile, and apparel sectors, while generating modest overall gains in welfare, fueled primarily by improved market access for goods with negligible effects on real GDP.”  The IMF study found that the economic benefits of the USMCA would be significantly increased if there was an end to Trump`s trade war (i.e., if the U.S. . . .